The translational motion compensation methods for conventional Inverse Synthetic Aperture Radar (ISAR) are not suitable for ballistic targets. In the paper, an algorithm for ballistic targets translational motion compensation and micro-Doppler (m-D) feature extraction is proposed. Based on the analysis of m-D effect of ballistic targets with tails without translational motion compensation, the skeleton extraction algorithm in morphology image processing is firstly utilized to suppress the sidelobes of range profile, and then the m-D curves on the range-slowtime plane are separated. The Empirical-Mode Decomposition (EMD) algorithm is then utilized to obtain the translational motion component from the m-D curves for translational motion compensation. The micro-motion features of target such as spinning frequency and coning frequency are also obtained from the EMD results. Simulations are given to validate the effectiveness and robustness of the proposed algorithm.