This paper focuses on the optimal method of the non-contact velocity measurement and relative positioning system for medium and low speed maglev trains. By analyzing the working principle of the velocity measurement method based on counting sleepers and analyzing the speed system error and random error model, it is shown that the velocity measurement accuracy based on the counting sleeper speed measurement method needs to be further improved. Therefore, a method of using multi-sensor information fusion is proposed to improve the accuracy of velocity measurement and relative positioning. Firstly, aiming at the disturbance problem of traction, braking and suspension vibration in the attitude angle calculation and the cumulative error problem of attitude angle, a posture solution method combining the optimized second-order complementary filter and the velocity adaptation Unscented Kalman filter with maximum noise reduction is proposed; Then, in order to further reduce the accumulated error of the attitude angle and the high performance requirements of the gyroscope, the bias instability of the gyroscope is analyzed, and an adaptive wavelet de-noising algorithm based on threshold optimization is proposed; Finally, to weaken the colored noise interference caused by the suspension vibration and to weaken the velocity accumulation error, a fusion velocity measurement and positioning algorithm of multi-loop Kalman filter with acceleration fusion correction and velocity accumulation error correction is researched. The effectiveness of the proposed fusion method is verified through simulation comparison analysis and on-board engineering test. Compared with the velocity measurement method based on counting sleepers, the velocity measurement accuracy is improved by an order of magnitude, and its accuracy is comparable to the high-precision velocity measurement method based on the induction loop and GPS/INS. It has certain engineering applicability and application value.