Based on inverse transient analysis method, the identification calculation was performed by minimizing the inverse least square problem representing the difference between the measured and predicted transient response in the waxy oil pipeline. And Levenberg-Marquardt method was adopted to optimize the friction factors. The hydraulic transient was modeled using MOC. The Jacobian matrix of the friction factor’s sensitivity was obtained by direct differentiation of the method of characteristic equations. By means of an example, the errors between the measured values and the calculated values of the middle point on the waxy oil pipeline were compared. The calculated values were solved by means of average, formular and identification friction factors. The results show that the identification method has good evaluation for the internal state variables. Identification basing on inverse transient method can be used to improve the accuracy of simulation and control with pipelines.