A Kalman filtering‐based distributed algorithm is proposed to deal with the sparse signal estimation problem. The pseudomeasurement‐embedded Kalman filter is rebuilt in the information form, and an improved parameter selection approach is discussed. By introducing the pseudomeasurement technology into Kalman‐consensus filter, a distributed estimation algorithm is developed to fuse the measurements from different nodes in the network, such that all filters can reach a consensus on the estimate of sparse signals. Some numerical examples are provided to demonstrate the effectiveness of the proposed approach.