A correction-based resonance self-shielding method is developed that allows annular subdivision of the fuel rod. The method performs the conventional iteration of the embedded self-shielding method (ESSM) without subdivision of the fuel to capture the interpin shielding effect. The resultant self-shielded cross sections are modified by correction factors incorporating the intrapin effects of radial variation of the shielded cross section, radial temperature distribution, and resonance interference. A quasi–one-dimensional slowing-down equation is developed to calculate such correction factors. The method is implemented in the DeCART code and compared with the conventional ESSM and subgroup method with benchmark MCNP results. The new method yields substantially improved results for both spatially dependent reaction rates and eigenvalues for typical pressurized water reactor pin cell cases with uniform and nonuniform fuel temperature profiles. The new method is also proved effective in treating assembly heterogeneity and complex material composition such as mixed oxide fuel, where resonance interference is much more intense.