In order to enhance the signal-to-noise-ratio of a distributed acoustic sensing system based on phase-sensitive optical time-domain reflectometry (Φ-OTDR), we have proposed a combination of segmented unwrapping algorithm, averaging estimation of phase difference, and infinite impulse response (IIR) filtering method. The enhancement of signal quality is numerically demonstrated. Moreover, we have studied the influence resulted from the light source noise on the Φ-OTDR performance. The result has shown that when the linewidth of light source used in the Φ-OTDR system is narrower, the performance of the system is better. In a word, such a Φ-OTDR system could obtain higher quality demodulated signals when the narrower linewidth light source is chosen and the method of averaging estimation phase difference is used.