A compact polarization Raman lidar has been designed and constructed for using it for atmospheric correction measurements during satellite optical sensor calibration in areas with high altitude and extremely low aerosol loading. The parameters of this lidar, such as laser wavelength, telescope diameter and interference filter bandwidth, were simulated and optimized for the best observation performance. The instrument has low weight, is small in size, and requires air cooling instead of commonly used water-cooling of the laser. Thus, the instrument is suitable for autonomous operation in remote sites. The lidar prototype was installed in Lijiang (26°43' N, 100°01' E), China, a potential observation site for calibrations of optical sensors of satellites. This observation site has been shown to be an appropriate place for remote sensing and satellite calibration activities with low aerosol loading, thin air and a comparably high proportion of cloud-free days. A field campaign carried out between November 2019 and April 2020 allowed for thoroughly testing the instruments. The results of test observations show that complete overlap between emitted laser beam and field-of-view of the receiver unit is achieved at relatively low heights above ground. The measurement accuracy is comparably high. Thus, this instrument is suitable for operating in areas with relatively clean atmospheric conditions.