Source localization is an important problem in the field of sonar and radar, etc. For the purpose of source localization, two or more spatially separated sensors are often used to measure the time difference of arrivals of a radiating source whose transmitted signal waveform is unknown. The NLS(Nonlinear Least Square) cost function with curve fitting method was proposed recently, which provide robust source localization performance by reducing estimation ambiguity. However, even this algorithm shows degraded performance in a multipath environment. To estimates source localization correctly, source localization algorithm that eliminate the effect of multipath signals is required. In this paper, PMP(Power Matching Procedure) is added to the algorithm, which provides improved source localization performance by properly cutting out the effect of multipath signals. Through simulation the performance of the proposed source localization algorithm is verified.