Equivalent time sampling causes noise in reconstructed pulse stream due to the transmitter or receiver jitter or path variations. When this pulse stream is used for localization, system accuracy is limited by the reconstructed pulse signal to noise ratio (SNR). In this paper, the jitter effects from transmitter and receiver on reconstructed pulse are simulated and an improvement technique based on digital correlation technique for increasing reconstructed signal SNR is proposed. This technique is employed on existing localization system to improve the accuracy of the system and a timing accuracy of 2.75 psec has been achieved and experimentally demonstrated compared to 15.6 psec before using correlation processing..