Single Channel Blind Source Separation (SCBSS) is an extreme case of underdetermined (more sources and fewer sensors) Blind Source Separation (BSS) problem. In this paper, we propose a novel technique using Local Mean Decomposition (LMD) and Independent Component Analysis (ICA) combined with single channel BSS (LMD-ICA). First, the LMD was used to decompose the single channel source into a series of data sequences, which are called as Product Functions (PF), then, ICA algorithm was used to process PFs to get similar independent components and extract the original signals. A comparison was made between LMD-ICA and previously proposed single channel ICA method (EEMD-ICA). The real time experimental results demonstrated the advantage of the proposed single channel source separation method for artifact removal and in biomedical source separation applications.