The effects of reflected wave of the sea on pseudolite ranging accuracy are analysed in this paper, when a pseudolite navigation system is used for wide area outdoor applications such as aircraft and vessels positioning. Methods for minimizing the influence of sea surface reflection wave were proposed. The methods include the appropriate correlator in pseudolite navigation system through the correlation performance comparison analysis in receiver design, the use of the technology of multiple antennas, and locating the transmitting station antenna on an appropriate position. From the results of experiments, the method of locating the antenna position shows the most reliable performance against the effect of surface reflection wave. The analysis results of the ranging accuracy improvement are addressed, when the multipath caused by sea surface reflection exists.