In the logging-while-drilling (LWD) acoustic measurements, distinguishing and estimating formation acoustic properties from the interfering signals are commonly deemed difficult. In this study, we present the results of a new signal processing technique based on the supervirtual interferometry (SVI) theory for LWD acoustic data processing. Analytical and numerical modeling is used to analyze the waveform characteristics for different collar attention effects. The results show that the formation signal identification can be difficult in the presence of the collar wave, especially in the situation when the collar wave is poorly attenuated. We apply the new technique to the synthetic and field LWD acoustic data to evaluate its validity and effectiveness. The processing results for the interval demonstrate the ability of the technique to extract formation property for the LWD data in the presence of collar wave and drilling-related noise.