In order to improve the accuracy of star centroid extraction of star sensor under single event effect condition, an on-orbit correction method based on PSF reference model is proposed. With the construction of star reference model and residual image correction, the proposed method can effectively accomplish single event effect noise elimination and star shape correction, which reduces star centroid error. Compared with existing methods, the proposed method can maintain the energy of stars while denoising. A simulation experiment certificates the effectivity of the proposed method. A contrast experiment shows the superiority of the proposed method compared with other denoising algorithm.