Abstract: Continuously distributed time-lags systems CDTLS are widely found in socioeconomic activities and engineering practice.This paper presents a new method of solving optimal control problem of CDTLS by Walsh trans-formation.The approach is:First expand the input and state functions into limited Walsh series and transfer the solution of its state equation,which is in the form of double Volterra integral,into the form of algebraic matrix operations in the sequence domain.Then the problem of solving functional extremum is simplified into that of solvingfunction extremum.The Walsh transformation theory ensures that our result must be a good approximation of theaccurate solution.