This paper describes real time implementation of subband sound localization system on a floating-point DSP TI TMS320C31. The system determines two dimensional location of an active speaker in a closed room environment with real noise presents. The system consists of an two microphone array connected to TI DSP hosted by PC. The implemented sound localization algorithm is Subband CPSP which is an improved version of traditional CPSP (Cross-Power Spectrum Phase) method. The algorithm first split the input speech signal into arbitrary number of subband using subband filter banks and calculate the CPSP in each subband. It then averages out the CPSP results on each subband and compute a source location estimate. The proposed algorithm has an advantage over CPSP such that it minimize the overall estimation error in source location by limiting the specific band dominant noise to that subband. As a result, it makes possible to set up a robust real time sound localization system. For real time simulation, the input speech is captured using two microphone and digitized by the DSP at sampling rate 8192 hz, 16 bit/sample. The source location is then estimated at once per second to satisfy real-time computational constraints. The performance of the proposed system is confirmed by several real time simulation of the speech at a distance of 1m, 2m, 3m with various speech source locations and it shows over 5% accuracy improvement for the source location estimation.