Abstract: Direction finding is an important component of Electronic Warfare (EW) system. The direction finding precision may directly affect signal sorting, identification, location and jamming decision etc. It is an urgent task to improve the direction finding precision. To solve the problems of time difference direction finding is sensitive to interference and noise, this paper proposes a novel blind source separation algorithm based on informational canonical correlation analysis firstly, and then use the algorithm to improve time difference direction finding performance. The simulation results suggest that the proposed algorithm is efficient and feasible.