Zero time delay can be achieved by using dither stripping method for the readout signal processing of mechanical dithered ring laser gyro (MDRLG). An external dither pickoff reference signal is needed for all existing dither stripping apparatuses. The obtaining of the dither reference will make the application system more complex, and the system will be less stable. A new dither stripping method is developed, in which external reference signal is needed no more; instead the reference signal is generated by the gyro itself. The circuit is simplified by using this method; meanwhile experimental results show that this method can achieve better output results than those of the method using external reference. This method makes the MDRLG easier to be used in the applications of fast control and tracking.