A new pressure correction algorithm for incompressible flows on staggered grids is presented. Pressure equation and dilation of velocity in iteration are developed using the discretized momentum equation and continuity equation. To compensate the nonzero dilation, pressure correction equation and velocity correction formula are constructed. Anti-underrelaxation method is proposed to speed the convergence and stabilize the computation. Numerical results show that the present algorithm consumes less time than SIMPLEC algorithm.