The time difference of arrival (TDOA) and frequency difference of arrival (FDOA) between two receivers are widely used to locate an emitter. Algorithms based on cross ambiguity functions can simultaneously estimate the TDOA and FDOA accurately. However, the algorithms, including the joint processing of received data, require transferring a large volume of data to a central computing unit. It can be a heavy load for the data link, especially for a wideband signal obtained at a high sampling rate. Thus, we proposed a multi-pulse cross ambiguity function (MPCAF) to compress the data before transmitting and then estimate the TDOA and FDOA with the compressed data. The MPCAF consists of two components. First, the raw data are compressed with a proposed two-dimensional compression function. Two methods to construct a reference pulse used in the two-dimensional compression function are considered: a raw data-based method constructs the pulse directly from the received signal, and a signal parameter-based method constructs it through the parameters of the received signal. Second, a wideband cross-correlation function is studied to refine the TDOA and FDOA estimates with the compressed data. The simulation and Cramer–Rao lower bound (CRLB) analyses show that the proposed method dramatically reduces the data transmission load but estimate the TDOA and FDOA well. The hardware-in-the-loop simulation confirms the method’s effectiveness.