The detection of dipole-like sources, such as unexploded ordnances (UXO) and other metallic objects, based on a magnetic gradiometer system, has been increasingly applied in recent years. In this paper, a novel dipole-like source detection algorithm, based on eigenvector analysis with magnetic gradient tensor data interpretation is presented. Firstly, the theoretical basis of the eigenvector decomposition of magnetic gradient tensor is analyzed. Then, a detection algorithm is proposed by using the properties of the tensor eigenvector decomposition to locate dipole-like magnetic sources. The algorithm can automatically detect magnetic dipole-like sources without estimating the magnetic moment direction. It performs well for locating weak, anomalous dipole-like sources in air-borne magnetic data through quantitative interpretation. The effectiveness of the proposed algorithm has been demonstrated in the designed synthetic experiment. Finally, an air-borne magnetic field data taken at high altitude with exact source position information is used to validate the practicality of the proposed algorithm. All of the experiments prove that the proposed algorithm is suitable for magnetic dipole-like source detecting and air-borne magnetic gradiometer data interpretation.