This paper presents a neural network approach for on-line estimation of partial discharge(PD) location using advanced correlation technique in power transformer. Ultrasonic sensors detect ultrasonic signals generated by a PD and the proposed method calculates time difference between the ultrasonic signals at each sensor pair using the cross-correlation technique applied by moving average and the Hamming window. The neural network takes distance difference as inputs converted from time difference, and estimates the PD location. Case studies showed that the proposed method using advanced correlation technique and a neural network estimated the PD location better than conventional methods.