Abstract: To solve the problem of marine sound source localization in time difference of arrival (TDOA) system, the application of Chan algorithm in the measurement of marine sound source position is studied. The model of passive localization based on TDOA system is established, and the solution procedure of TDOA localization equation with Chan algorithm is derived. By using the Monte Carlo numerical method, the positioning accuracy of Chan algorithm is compared with that of Taylor series expansion method in which the initial value is taken as true value, so that the array layout principles and the application condition of Chan algorithm are obtained in sound source localization. The simulation results show that the Chan algorithm can be applied in marine sound source localization with high positioning accuracy under certain conditions, which provides a reference for the design of sound source localization algorithm and the base station layout.