Lidar return signals are studied for a micro-pulse lidar under sky conditio
ns with multi-layer clouds. From theoretical considerations on the lidar si
gnal-to-noise ratio, it is estimated that the maximum cloud optical thickne
ss detectable is about 3.7. This result reasonably agrees with the actual m
ulti-layer cloud data obtained from observations in Sukhothai, Thailand. De
viations from theoretical prediction, however, are found for a geometricall
y thin but dense cloud, and for a moderately concentrated but geometrically
thick cloud. The effect of multiple scattering is also discussed.