Vibration analysis is one of the main effective ways for rolling bearing fault diagnosis, and achallenge is how to accurately separate the inner and outer race fault features from noisy compoundfaults signals. Therefore, a novel compound fault separation algorithm based on parallel dual-Qfactorsand improved maximum correlation kurtosis deconvolution (IMCKD) is proposed. First, thecompound fault signal is sparse-decomposed by the parallel dual-Q-factor, and the low-resonancecomponents of the signal (compound fault impact component and small amount of noise) are obtained,but it can only highlight the impact of compound faults, and failed to separate the inner and outerrace compound fault signal. Then, the MCKD is improved (IMCKD) by optimizing the selection ofparameters (the shift order M and the filter length L) based on the iterative calculation method withthe Teager envelope spectral kurtosis (TEK) index. Finally, after the composite fault signal is filteredand de-noised by the proposed method, the inner and outer race fault signals are obtained respectively.The fault characteristic frequency is consistent with the theoretical calculation value. The results showthat the proposed method can efficiently separate the mixed fault information and avoid the mutualinterference between the components of the compound fault.