Summary: A novel approach is presented for identifying disturbance sources in wall-bounded shear flows. The underlying approach models the flow state, as measured by sensors embedded in the flow, as a mixture of disturbance sources. The degenerate unmixing estimation technique is adopted as a blind source separation technique to recover the separate sources and their unknown mixing process. The efficiency of this approach stems from its ability to isolate any, a priori unknown, number of sources, using two sensors only. Furthermore, by adding a single additional sensor, the method is expanded to also determine the propagation velocity vector of each of the isolated sources, based on sensor readings from three sensors appropriately located in the flow field. Theoretical guidelines for locating the sensors are provided. The power of the method is demonstrated via computer simulations and wind-tunnel experiments. The numerical study considers disturbances comprising discrete Tollmien-Schlichting waves and wave packets. Linear stability theory is used to model source mixtures acquired by sensors placed in a Blasius boundary layer. The experimental study investigates the flow over a flat plate, with hot wires as sensors, and a loudspeaker and plasma actuators as source generators. Based on numerical and experimental demonstrations, it is believed that the new approach should prove useful in various applications, including active control of boundary layer transition from laminar to turbulent flow.