Aerosols interfere with differential absorption lidar ozone concentration measurement and can introduce significant errors. A new retrieval method was introduced, and ozone concentration and aerosol extinction coefficient were gained simultaneously based on the retrieval method. The variables were analyzed by experiment including aerosol lidar ratio, aerosol wavelength exponent, and aerosol-molecular ratio at the reference point. The results show that these parameters introduce error less than 8% below 1 km. The measurement error derives chiefly from signal noise and the parameters introduce error less than 3% above 1 km. Finally the vertical profile of tropospheric ozone concentration and aerosol extinction coefficient were derived by using this algorithm. The retrieval results of the algorithm and traditional dual-wavelength difference algorithm are compared and analyzed. Experimental results indicate that the algorithm is feasible, and the algorithm can reduce differential absorption lidar measurement error introduced by aerosol.