A parametric acoustic receiving array (PARRAY) uses nonlinear acoustic effects to achieve directional receiving array characteristics. The response of the PARRAY to transducer motion is significantly different from the response of conventional hydrophone arrays. In this paper, a theory relating motion of the tranducers to effects on the PARRAY output signal is developed and several models are derived. The models are useful both for evaluating the potential of the PARRAY for various applications and for specific PARRAY system design. Experiments with 5‐ and 340‐m‐long PARRAY’s are described and data which verify the models are presented. Electronic techniques of counteracting the effects of transducer motion are discussed.