Abstract: It has been proved theoretically that two targets of incompletely correlated could be identified by linear signal processing methods. Aiming at difficult problems upon two wideband targets the vector hydrophone signal model is deduced, then two parallel processing channels of the same structure are designed each of which has two steps, first subspace rotating on the received signals to separate a single target, then estimating the target's azimuth with spatial matched filter. Simulation researches indicate that this method were acceptable for every kind of bandwidth and for two targets even much different in strength. The method is insensitive to initial azimuth error, robust the same efficient in all the azimuths and it possesses time-bandwidth-gain. In the circumstance of correlated targets or low SNR, this method outperforms wideband focusing subspace methods. The method is verified with sea trial data. So it is a very practical separating and tracking method on two targets in underwater.