In this paper, a new method for 2-D frequency estimation of multiple damped sinusoids in additive white Gaussian noise is proposed. The key idea is to combine the subspace-based technique and projection separation approach. The frequency parameters in the first dimension are estimated by the MUSIC-based method, and then a set of projection separation matrices are constructed by the estimated frequency parameters. In doing so, the frequency parameters in the second dimension can be separated by the constructed projection separation matrix. Finally, each frequency parameter in the second dimension is estimated by multiple 1-D MUSIC-based methods. The estimated frequency parameters in two dimensions are automatically paired. Computer simulations are included to compare the proposed algorithm with several existing methods.