White-light interferometry (WLI) is a powerful technique for distributed fiberoptic sensing system. The sensing regions are determined by the optical path difference between two polarization modes of dual-mode optical fiber and the coupling coefficients are measured by detecting the interferogram. However, the performance of the system is limited by the coherent length of low-coherent source and the crosstalk among the sensing units. in this paper, we propose a method to process interferogram to improve resolution and eliminate crosstalk in distributed sensing-system.