Phased array microphones and beamforming technology are applied herein in order to better understand the noise sources associated with the installation effects of a counter-rotating open rotor propulsion system. The study compares an installed (equipped with a pylon) and an uninstalled (standalone) engine for takeoff nominal flight conditions, using beamforming results to investigate the far-field acoustic character and to localize noise sources, sorting them into various components accordingly. The study demonstrates how the various noise sources falling in the blade passing frequency bins can be separated into those components which are truly associated with the blade passing frequency and those which are associated with blade-wake interactions. This is done by taking into consideration the nature of the noise sources, and distinguishing between rotating coherent and stationary coherent noise sources. The paper also demonstrates that the impact of the pylon wake on the rotating coherent noise sources (such as blade passing frequency tones and interaction tones) and on the rotating incoherent noise sources (such as rotating broadband noise sources and shaft order noise sources) is small. Though the paper presents the results of a specific comparison, the methodology for separating apart the various components noise presented herein is generally applicable in other investigations.