To suppress airwave interference, a time-domain coded electromagnetic exploration method is proposed with Pseudo-Random Binary Sequences (PRBS) code as the source signal. Based on the PRBS code and receiving voltages, which are recorded simultaneously, the impulse response of the earth can be obtained by the time-domain deconvolution signal recovery method, and the target information is effectively contained in the impulse response. The selection methods of clock frequency and code length were analyzed and field experiments were carried out, which demonstrated that the signal quality of the EM data could be improved by decreasing the clock frequency, or increasing the code length. The proposed method could greatly suppress the airwave interference and effectively identify underground anomalies.