In this paper, the use of a uniform circular antenna arrays (UCA) for high resolution of two dimensional (2D) direction of arrivals (DOAs) estimation in wireless location system is investigated. Performance of 2D DOA estimation based on the real-valued unitary transformation MUSIC algorithm for UCA is presented, especially focusing on DOA estimation of multiple correlated signals. The determination of the number of incident signals on an antenna array is addressed in the condition of colored noise and coherent signal sources. Selected method for estimating the number of these sources is formulated based on the modified eigenvectors of the covariance matrix of the received signal at the antenna array. The calibration procedure is also presented for UCA especially. Simulation results are presented to confirm the performance analysis of algorithm, then the validations of Unitary Transformation MUSIC algorithm are performed based on the measurement data in a wireless location system.