In this paper, we propose a time-frequency domain reflectometry (TFDR) based measurement method for localizing concentric neutrals corrosion on live underground power cable. It consists of two inductive couplers which can transmit the reference signal into live underground power cable and measure the reflected signals from the impedance discontinuities of concentric neutrals corrosion. In order to compensate the dispersion of the measured reflected signal via inductive coupler, an equalizer based on Wiener filtering is designed. To improve the localizing performance of concentric neutrals corrosion in the vicinity of the measurement point, the reference signal is removed from the measured reflected signals. The localization performance of the proposed method is verified by the concentric neutrals corrosion localization experiment.