Wide Field Electromagnetic Method(WFEM) is an important means of middle and deep mineral exploration. According to the characteristics of WFEM data, a laterally constrainted pseudo-two-dimensional algorithm (SD-WLCI) based on skin depth weighting is proposed in this paper. Through two two-dimensional theoretical models, it is proved that the algorithm can effectively improve the horizontal continuity of deep inversion results in WFEM and improve the resolution of layer interface. In addition, the influences of three regularization factor search methods (linear search method, cooling method and adaptive regularization factor method) on this algorithm are compared in detail. The results show that the linear search method is superior to the other two methods in terms of work efficiency and stability within the comparison range. Finally, this paper applies the skin-depth weighted lateral constraint algorithm to the inversion of wide-field electromagnetic data measured in a mining area of Dongguashan, Tongling. The inversion results are highly consistent with the actual geological conditions, which provides a reliable geophysical basis for the subsequent prediction of middle-deep mineral resources and borehole location. By comparing with the traditional lateral constraint inversion results, The practicability and necessity of this algorithm in the inversion of the measured data of wide-field electromagnetic method are proved.