A new diversity combining scheme is proposed for time-of-arrival (TOA) estimation of chirp signal in dense multipath channel. In the multipath channel, the performance of TOA estimation using conventional correlation matrix-based diversity combining scheme is degraded due to the lack of de-correlation effect. To increase the de-correlation effect, the proposed diversity scheme employs interleaving method based on the property of de-chirped signal. As a result, the proposed scheme increases de-correlation effect and also reduces the noise of TOA estimation. Finally, the diversity achieved from the proposed scheme improves TOA estimation performance. The de-correlation effect is analyzed mathematically. The estimation accuracy of the proposed diversity scheme is superior to that of conventional diversity scheme in multipath channel.