Underwater acoustic localization plays an important role in marine explorations. However, the complex shallow-sea environment induces the multipath reflection which severely interfere the localization accuracy. To suppress the multipath reflection induced interference and improve the estimation accuracy, we propose a method which based on circular sensor array. By using a uniform circular receiving array, the method estimate the target’s azimuth through sweep-spread carrier (S2C) algorithm. To mitigate azimuth estimation distortion caused by array arrangement errors, we employ an array calibration method. The lake experiment results have verified our proposed method, leading to an average 64.7% error reduction in the azimuth estimation when compared with traditional method.