Abstract In this paper, a new correlated covariance matrix for Multi-Input Multi-Output (MIMO) radar is proposed, which has lower SideLobe Levels (SLLs) compared to the new covariance matrix designs and the well-known multi-antenna radar designs including phased-array, MIMO radar and phased-MIMO radar schemes. It is shown that Binary Phased-Shift Keying (BPSK) waveforms that have constant envelope can be used in a closed-form to realize the proposed covariance matrix. Therefore, there is no need to deploy different types of radio amplifiers in the transmitter which will reduce the cost, considerably. The proposed design allows the same transmit power from each antenna in contrast to the phased-MIMO radar. Moreover, the proposed covariance matrix is full-rank and has the same capability as MIMO radar to identify more targets, simultaneously. Performance of the proposed transmit covariance matrix including receive beampattern and output Signal-to-Interference plus Noise Ratio (SINR) is simulated, which validates analytical results.