Traditional fractional time delay estimation (TDE) algorithm is se nsitive to ambient noise and reverberation noise, and the algorithm performance is severely degraded in the complex environment. To improve the accuracy of time delay estimation, a GCC maximum likelihood phase compensation (GCC MLP) phase compensation fract ional time delay estimation approach is proposed based on generalized cross correlation(GCC). The frequency domain weighting function is also improved for GCC algorithm. At the same time, linear phase compensation is applied to the cross correlation spectrum in frequency domain and a continuous time delay estimator is obtained. Simulation comparition between the proposed algorithm and the other fractional TDE algorithms demonstrates that the proposed algorithm outperforms the curve fitting algorithm and the sinc interpolation algorithm. Meanwhile the robustness to the noisy and the reverberant conditions is reinforced, the time delay estimation error also decreases. Therefore, GCC-MLP phase compensation fractional time delay estimation algorithm can be widely used in sound source direction of arrival estimation and sound source localization.