Delay time that affects the performances of many control synthesis techniques in controlled systems is common in most chemical industries. Estimating the delay time is also a difficult problem in identification fields. In this paper, aiming at continuous processes with delay time, an iterative least square identification method is proposed in the frequency domain. By introducing a truncated first-order Taylor expansion, the delay time term is linearized. Linear regression equation for least squares (LS) is directly derived from the transfer function whose nonlinear term is replaced by a linear one. For reducing the linear approximation error and getting more accurate estimations of the model parameters, an iterative algorithm is developed based on the LS. Moreover, the proposed method can be easily extended to a closed-loop system without increasing the order of the identified model. Simulations verify the effectiveness, fast convergence rates, and robustness of the proposed identification algorithm.