Passive Global Navigation Satellite System (GNSS)-based Synthetic Aperture Radar (SAR), known as GNSS-SAR, is a new passive radar imaging system. However, compared with conventional SAR, range resolution of GNSS-SAR is significantly lower. To improve range resolution of GNSS-SAR is an interested topic for investigation. In this paper, a novel range compression algorithm for enhancing range resolutions of GNSS-SAR is proposed. In the proposed scheme, at first, range compression is conducted by correlating the received reflected GNSS signal of intermediate frequency (IF) with the synchronized direct baseband GNSS signal in range domain. Then spectrum equalization is applied to the compressed results to suppress side lobes. Both theoretical analysis and simulation results have demonstrated that significant range resolution improvement in GNSS-SAR can be obtained by the proposed range compression algorithm, compared to the conventional range compression algorithm.