In theory, lidar overlap factor can be derived from the difference between the particle backscatter coefficient retrieved from lidar elastic signal without overlap correction and the actual particle backscatter coefficient, which can be obtained by other measured techniques. The side-scatter technique using a CCD camera is testified to be a powerful tool to detect the particle backscatter coefficient in near ground layer during night time. A new experiment approach to determine the overlap factor for vertically pointing lidar is presented in this study, which can be applied to Mie lidars. The effect of overlap factor on Mie lidar is corrected by an iteration algorithm combining the retrieved particle backscatter coefficient using CCD side-scatter method and Fernald method. This method has been successfully applied to Mie lidar measurements during a routine campaign, and the comparison of experimental results in different atmosphere conditions demonstrated that this method is available in practice.