A novel anti-cat-eye effect imaging technique based on wavefront coding is proposed as a solution to the problem of previous anti-cat-eye effect imaging techniques where imaging quality was sacrificed to reduce the retroreflection from the photoelectric imaging equipment. With the application of the Fresnel–Kirchhoff diffraction theory, and the definition of generalized pupil function combining both phase modulation and defocus factors, the cat-eye echo formation of the wavefront coded imaging system is theoretically modeled. Based on the physical model, the diffracted spot profile distribution and the light intensity distribution on the observation plane are further simulated with the changes in the defocus parameter and the phase modulation coefficient. A verification test on the cat-eye laser echo power of the wavefront coded imaging system and that of the conventional imaging system at a 20 m distance are conducted, respectively. Simulations and experiment results show that compared with conventional imaging systems, the wavefront coding imaging system can reduce the retroreflection echo by two orders of magnitude while maintaining better imaging quality through defocusing.