Based on the novel MEMS bionic vector hydrophone, superiority inferiority of the array spatial spectrum estimation by four correlation algorithms (including MUSIC algorithm, Capon algorithm, Spatial smoothing algorithm and MMUSIC algorithm) have been firstly simulated by the computer. On this basis of comparative analysis, considering the feasibility of operating and the accuracy of signal processing, the MUSIC algorithm which with the advantage of high directional precision and high resolution capability is selected to deal with the irrelevant signal source, then the MMUSIC algorithm is used to deal with relevant signal source. By the simulated validation and experimental analysis, the results show that the array directional accuracy of the MEMS vector hydrophone array is less than 5° with good ability to direction.