Coaxial rotor helicopters have great potential in civilian and commercial uses, with many advantages, but challenges remain in the accurate measurement of rotor blades’ distance to prevent blade collision. In this paper, a blade tip distance measurement method based on ultrasonic measurement window and phase triggering is proposed, and the triggering time of the transmitter is studied. Due to the complexity of the measured signal, bandpass filtering and a time-of-flight (TOF) estimation based on the power density of the received signal are utilised. The method is tested on an experimental test platform with a pair of 200 kHz ultrasonic transducers. The experimental results show that the maximum ranging error is less than 1.0% for the blade tip distance in a range of 100–1000 mm. Compared with the amplitude threshold method, the proposed TOF estimation method works well on the received signal with a low SNR and improves the ranging accuracy by about 5 mm when the blade tip distance is larger than 500 mm. This study provides a good reference for the accurate measurement of rotor blade tip distance, and gives a solution for ranging high-speed rotating objects.