In this paper, a new prototypical Scheimpflug lidar capable of detecting the aerosol extinction coefficient and vertical atmospheric transmittance at 1 km above the ground is described. The lidar system operates at 532 nm and can be used to detect aerosol extinction coefficients throughout an entire day. Then, the vertical atmospheric transmittance can be determined from the extinction coefficients with the equation of numerical integration in this area. CCD flat fielding of the image data is used to mitigate the effects of pixel sensitivity variation. An efficient method of two-dimensional wavelet transform according to a local threshold value has been proposed to reduce the Gaussian white noise in the lidar signal. Furthermore, a new iteration method of backscattering ratio based on genetic algorithm is presented to calculate the aerosol extinction coefficient and vertical atmospheric transmittance. Some simulations are performed to reduce the different levels of noise in the simulated signal in order to test the precision of the de-noising method and inversion algorithm. The simulation result shows that the root-mean-square errors of extinction coefficients are all less than 0.02 km-1, and that the relative errors of the atmospheric transmittance between the model and inversion data are below 0.56% for all cases. The feasibility of the instrument and the inversion algorithm have also been verified by an optical experiment. The average relative errors of aerosol extinction coefficients between the Scheimpflug lidar and the conventional backscattering elastic lidar are 3.54% and 2.79% in the full overlap heights of two time points, respectively. This work opens up new possibilities of using a small-scale Scheimpflug lidar system for the remote sensing of atmospheric aerosols.