Based on the principle of InSAR (Interferometirc Synthetic Aperture Radar) characterized by large-scale, continuity, permanency and dynamic, we took vertical displacement of solid Earth tide as an example to simulate the large-scale deformation observed by lunar based InSAR for the first time in the study and the observation ability was analyzed. Solid Earth tide has a feature of a large-space distribution range and the lunar based InSAR exhibits a feature of an ultra-wide swath imaging. According to these features, a simplified observation geometry model was established and a mid-low latitudes area with 50 degrees span in both longitude and latitude was selected as the simulation area. Then the revisit time intervals of the lunar based SAR for the selected area and the tidal vertical displacements at the points scanned by the radar were calculated. The time differentials were further computed to get the relative vertical deformation of the solid Earth tide. The simulation results show that the revisit period of the lunar based radar is about 24.8 hours and the maximum vertical displacement in 30 days is up to 30 cm. Since the designed accuracy of the lunar based InSAR reaches several centimeters, the observing of the vertical displacement of the solid Earth tide by using the lunar based InSAR is feasible in theory as the maximum magnitude of the vertical displacement is 1 order of magnitude larger than the designed accuracy. Theoretically ，solid Earth tide is observable by using lunar based InSAR in a sizable area.We can also use the observation data to study the temporal and spatial variation characteristics when observation time lasts two revisit periods or more. On the other hand,the result of the study also provides references for the parameter designing of other observations using the lunar based InSAR, especially for observing large-scale geodynamic phenomena.