In cross-correlation based elastography, the quality of the strain image is degraded by the distortion of echo waveforms due to tissue axial and lateral displacement. To study the effects of tissue lateral displacement on echo decorrelation, a tissue axial stretching model is developed and a concept called correlation signal-to-noise ratio (CSNR) is introduced to quantify the decorrelation effect due to tissue lateral displacement. A computer simulation based on the tissue stretching model is carried out to study the influence of several important elastographic parameters on echo decorrelation due to tissue lateral displacement. Finally, guided by the CSNR concept, a 2-dimensional (D) spatial comprehensive cross-correlation method is proposed to reduce the decorrelation noise. Results indicate that CSNR can be used as a quality indicator of elastography and the 2-D spatial comprehensive cross-correlation method can effectively reduce the decorrelation noise while slightly decreasing the lateral resolution of the strain image.