Abstract: The sonar based on cylindrical transducer compared with linear transducer has few advantages. Particularly its omni-directional central symmetry enables simplification of the echo signal Direction of Arrival (DOA) estimation. When the number of transducer staves is the power of two the efficient Fast Fourier Transformation can be used to calculate spatial convolution. The article presents theoretical and technological principles of the real time digital data processing of the wideband echo signals received by cylindrical hydroacoustic transducer. Described procedures enable high resolution underwater target location and precise data display. The implementation of effective broadband pulse compression technique with high range resolution will be presented. The results of signal processing modeling and examples of application will be also discussed.