Time-reversal processing (TRP) is an implementation of matched-field processing (MFP) where the ocean itself is used to construct the replica field. This paper introduces virtual time-reversal processing (VTRP) that is implemented electronically at a receiver array and simulates the kind of processing that would be done by an actual TRP during the reciprocal propagation stage. MFP is a forward propagation process, while VTRP is a back-propagation process, which exploits the properties of reciprocity and superposition and is realized by weighting the replica surface with the complex conjugate of the data received on the corresponding element, followed by summation of the processed received data. The number of parabolic equation computational grids of VTRP is much smaller than that of MFP in a range-dependent waveguide. As a result, the localization surface of VTRP can be formed faster than its MFP counterpart in a range-dependent waveguide. The performance of VTRP for source localization is validated through numerical simulations and data from the Mediterranean Sea. Time-reversal processing (TRP) [1][2][3][4][5][6][7] is a process of retransmitting a received signal in a time-reversed fashion by a source-receiver array. In the frequency domain, time reversal is equivalent to phase conjugation. When TRP is applied to source localization, known as virtual time-reversal processing (VTRP), it is unnecessary to send a signal back and forth between the source and receiver. Instead, assuming that the acoustic channel is sufficiently stable in time, the retransmission of the temporal dispersed signals in a time reversed fashion will be done by a computer. A passive array is used in VTRP instead of a source-receiver array.When TRP is applied to source localization, there is one drawback to this back-propagation approach. Because of sound attenuation, the acoustic intensity close to the "source-receiver" array is much stronger than the focusing peak at the real source location. This means that the focusing peak is only a local maximum around the real source *Corresponding author (email: walternwpu@gmail.com) location rather than a global one. To suppress the stronger peaks close to the passive array and make the focusing peak the global maximum, an appropriate normalization factor should be introduced to the back-propagation field. Therefore, the localization surface formed by VTRP contains the focusing peak, which provides the greatest likelihood of the source location.Matched-field processing (MFP) and VTRP are conceptually similar, but differ in their physical meaning and physical implementation. MFP [8-13] is a forward propagation process that consists of systematically placing a test point source at each point of a search grid, computing the replica vectors on the array and then correlating these replicas with the data from the real source. A search is performed in a region of possible target positions. VTRP is a back-propagation process which exploits the properties of medium reciprocity and superposition. VTRP ca...