Abstract: For the localization algorithm of sparse targets based on orth, the orth preprocessing would affect the sparsity of original signals. A novel localization algorithm of sparse targets based on LU-decomposition is proposed. It translates target localization into compressive sensing issue by using gridding method for sensing area, and then utilizes LU-decomposition to obtain a new observation dictionary, which satisfies effectively the restricted isometry property. Moreover, the sparsity of original signal can not be affected during the preprocessing of data observed, which will ensure the reconstruction performance and improve the localization accuracy. The experimental results show that, compared with the localization algorithm of sparse targets based on orth, the localization algorithm proposed have a much better performance, and the target localization accuracy is excellently improved.