A new frequency-modulated m-sequence correlation technique was described. It has. been seen that the frequency modulation scheme leads to higher signal-to-noise ratio than direct sequencing and less hardware effort than PSK modulation scheme. The operating frequency of the correlation system was deduced. The optimal frequency for the frequency-modulated m-sequence correlation system should be 1.35 times of the center frequency of the transducer. The application of this correlation technique to electromagnetic ultrasonic system was computer-simulated.