Abstract: Direction of arrival (DOA) estimation and signal recovery are the base of the underwater target orientation, tracking and recognition, respectively. Based on the array manifold which can be estimated using blind source separation, and by combining the complex blind source separation with the high resolution method, a new method for direction estimation and signal recovery is proposed. It was tested by the simulation with wideband data, the result showed that this method can complete the real-time estimation of the target direction and estimate the corresponding signal of targets. It is superior to the single high resolution method for the same result under the same condition. It was also tested by the recorded data in real sea. Its performance is better than that of the routine minimum variance distortionless response (MVDR) method. It can obviously increase the space spectrum power of the faint target signal and improve the detection capability of the sonar system.