Two algorithms of data processing are proposed to shorten the unmeasurable dead-zone close to the zero-position of measurement, i.e., the minimum working distance of a dispersive interferometer using a femtosecond laser, which is a critical issue in millimeter-order short-range absolute distance measurement. After demonstrating the limitation of the conventional data processing algorithm, the principles of the proposed algorithms, namely the spectral fringe algorithm and the combined algorithm that combines the spectral fringe algorithm with the excess fraction method, are presented, together with simulation results for demonstrating the possibility of the proposed algorithms for shortening the dead-zone with high accuracy. An experimental setup of a dispersive interferometer is also constructed for implementing the proposed data processing algorithms over spectral interference signals. Experimental results demonstrate that the dead-zone using the proposed algorithms can be as small as half of that of the conventional algorithm while measurement accuracy can be further improved using the combined algorithm.