The detection and identification of gross errors, especially measurement bias, plays a vital role in data reconciliation for nonlinear dynamic systems. Although parameter estimation method has been proved to be a pow-erful tool for bias identification, without a reliable and efficient bias detection strategy, the method is limited in ef-ficiency and cannot be applied widely. In this paper, a new bias detection strategy is constructed to detect the pres-ence of measurement bias and its occurrence time. With the help of this strategy, the number of parameters to be es-timated is greatly reduced, and sequential detections and iterations are also avoided. In addition, the number of de-cision variables of the optimization model is reduced, through which the influence of the parameters estimated is reduced. By incorporating the strategy into the parameter estimation model, a new methodology named IPEBD (Improved Parameter Estimation method with Bias Detection strategy) is constructed. Simulation studies on a con-tinuous stirred tank reactor (CSTR) and the Tennessee Eastman (TE) problem show that IPEBD is efficient for eliminating random errors, measurement biases and outliers contained in dynamic process data.