In this paper, the definition and the key features of Software Radar, which is a new concept, are proposed and discussed. We consider the development of modern radar system technology to be divided into three stages: Digital Radar, Software radar and Intelligent Radar, and the second stage is just commencing now. A Software Radar system should be a combination of various modern digital modular components conformed to certain software and hardware standards. Moreover, a software radar system with an open system architecture supporting to decouple application software and low level hardware would be easy to adopt "user requirements-oriented" developing methodology instead of traditional "specific function-oriented" developing methodology. Compared with traditional Digital Radar, Software Radar system can be easily reconfigured and scaled up or down to adapt to the changes of requirements and technologies. A demonstration Software Radar signal processing system, RadarLab 2.0, which has been developed by Tsinghua University, is introduced in this paper and the suggestions for the future development of Software Radar in China are also given in the conclusion.