Sound pressure amplitude will be attenuated with propagation distance in a certain rule when sound wave is propagated in shallow sea.When processing the attenuated signal,time-variant gain circuit is usually used to compensate its diffusion loss.In this paper,spherical diffusion loss is compensated by digital potentiometer and operational circuit and further investigation is also made on compensation of cylindrical diffusion loss and transition from spherical diffusion loss to cylindrical diffusion loss.Finally,a new compensation model is proposed for unknown propagation loss for the purpose of adjusting the dynamic range of signal to meet the requirement of A/D conversion.