Abstract: Aiming at a simulation of algorithms for moving target localization and tracking by time delay estimation, a new simulation method based on an algorithm to generate time-varying time delay signals is put forward. This algorithm uses the linear phase of a FIR filter. After the suppositional target signal passes a time-varying FIR filter, an output signal that has time-varying time delay relative to the original signal is generated. Based on this process, and considering the target's moving pattern, disturbing signal, surrounding noise and the signal noise ratio, the suppositional signals received by the acoustic sensor array can be generated. Then the localization algorithm gets the targets position through them. Simulation showed that the method can evaluate the capability of localization algorithms suitably and that it has wide applicability and practicability.