In cognitive radio systems, secondary users can utilize multiple dispersed bands that are not used by primary users. In this paper, time delay estimation of signals that occupy multiple dispersed bands is studied. First, theoretical limits on time delay estimation are reviewed. Then, two-step time delay estimators that provide trade-offs between computational complexity and performance are investigated. In addition, asymptotic optimality properties of the two-step time delay estimators are discussed. Finally, simulation results are presented to explain the theoretical results.