A new normalized MBD algorithm is presented for nonstationary convolutive mixtures and its properties/modifications are discussed in details. The proposed algorithm normalizes the signal spectrum in the frequency domain to provide faster stable convergence and improved separation without whitening effect. Modifications such as nonholonomic constraints and off-diagonal learning to the proposed algorithm are also discussed. Simulation results using a real-world recording confirm superior performanceof the proposed algorithm and its usefulness in real world applications.