The invention provides a pseudo-satellite near-far effect inhibition method based on multi-constrained beam forming. Signals received by an antenna array are subjected to A/D (analog/digital) sampling, bandpass filtering, amplitude-phase error correction, covariance matrix and inverse matrix calculation, MUSIC (multiple signal classification) direction finding, pseudo-satellite and navigation satellite signal power estimation, calculation of constraint response vectors corresponding to the direction of pseudo-satellite signals, calculation of multi-constrained beam forming weight, digital beam forming, and navigation solution, so that local position is obtained finally. The method is more universal capable of operating in interference environment, convenient and flexible, modification of a transmitting terminal (pseudo-satellite) is avoided, and modification of radio frequency of a receiving terminal is also avoided. Verification shows that the method is effective and easy to implement.