A modified parallel factors analysis (PARAFAC) algorithm with the penalty diagnolization error (PDE) was developed. This algorithm can overcome the slow convergence problem of the traditional PARAFAC method and is insensitive to the number of components, i.e., it is much faster than PARAFAC and insensitive to overestimation of the dimensionality of the model. The characteristic performance was demonstrated by treating simulated and real excitation-emission fluorescence data for samples of naphthalene, 1-naphthol and 2-naphthol with satisfactory results.