In this study, the theories of wavelet transform and cross-time frequency spectrum (CTFS) are used to locate AE source with frequency-varying wave velocity in plate-type structures. A rectangular array of four sensors is installed on the plate. When an impact is generated by an artificial AE source such as Hsu–Nielsen method of pencil lead breaking (PLB) at any position of the plate, the AE signals will be detected by four sensors at different times. By wavelet packet decomposition, a packet of signals with frequency range of 0.125–0.25 MHz is selected. The CTFS is calculated by the short-time Fourier transform of the cross-correlation between considered packets captured by AE sensors. The time delay is calculated when the CTFS reaches the maximum value and the corresponding frequency is extracted per this maximum value. The resulting frequency is used to calculate the group velocity of wave velocity in combination with dispersive curve. The resulted locating error shows the high precision of proposed algorithm.