Extended propagator method (EPM) utilizes propagator method for signal direction finding by extending the data first.It has better performance in resolution and accuracy than that of classical high resolution algorithms that dont make full use of the noncircular information.But the array element position error has an influence on the performance of the algorithm in the real direction finding.An EPM algorithm based on virtual interpolated array (VIA-EPM) is proposed.By utilizing transformation matrix which is obtained through the real array manifold and virtual array manifold the real covariance matrix can be converted to virtual covariance matrix and the spatial spectrum function can be obtained after splitting the virtual covariance matrix.Simulation results show that if sensor position errors exist the performance of the new algorithm is similar to the calibrated EPM algorithm by using virtual interpolated array (VIA) for the calibrated sensor position data and this algorithm also keeps the performance in array extension and high accuracy.The estimation accuracy and resolution of VIA-EPM algorithm based on extended covariance matrix is better than VIA-EPM algorithm based on extended data matrix in the case of low SNR.