The aim of this paper is to further develop Stepped Frequency Waveform Reflectometry (SFWR) algorithms for the case of overlapping reflected signals. SFWR is a novel reflectometry technique, primarily developed for localization and characterization of cable faults, which makes use of a sequence of sinusoidal bursts as reference signal. When reflected signals overlaps with the transmitted one or with each other, it is not possible to use the standard technique and a modified procedure is required. A novel technique for localizing overlapping reflected signals is presented and integrated with the fault characterization procedure. Experimental results, obtained from tests on coaxial cables, are reported to prove the effectiveness of the proposed algorithm.