System and method for generating a Position Error Signal (PES) reference curve in data storage devices are provided. The method includes scanning a distance of at least one Track Pitch (TP) in a cross-track direction in each servo-burst along a predefined path. One or more TPs in each servo-burst are scanned with a read head. The method further includes, calculating a plurality of samples of each differential signal. A differential signal corresponds to a first read-back signal and a second read-back signal. Thereafter, a plurality of normalized signals are determined. A normalized signal is determined by dividing each sample of the differential signal with a normalization constant. The plurality of normalized signals are combined to generate the PES reference curve.