The velocity measuring correlation sonar disclosed employs a planar array of receiving transducers spaced in the directions along which velocity components parallel to the plane of the array are to be measured, and includes means for transmitting a series of two or more identical pulses which are separated by a time interval selected in accordance with transducer separation and the estimated velocity components so as to place the expected point of maximum correlation of the echo return from one pulse with that from a following pulse within the boundaries of a set of spatial sample points representing relative spacings between pairs of receiving transducers. Correlation measurements are made corresponding to these relative spacings of the receiving transducers, with each such measurement being treated as a sample of a space-time correlation function of predetermined shape. The location of the peak of this function in each of the directions of interest is estimated by curve fitting techniques, and yields the velocity vector in that direction scaled by the inter-pulse time interval. The velocity component normal to the plane of the array may be derived by estimating the location of the correlation peak as a function of time and/or phase, using similar curve fitting techniques.