Both anisotropy and permeability affect the propagation of elastic wave in reservoirs. With the progress of oil and gas exploration, methods for evaluating anisotropy and permeability in complex reservoirs have been developing from wireline (WL) to acoustic logging while drilling (ALWD). In this study, the propagation mechanism of elastic waves in transversely isotropic porous formation is studied based on the Biot theory. By analyzing the sound field in each part of the fluid-filled borehole containing collar, the expression of ALWD in transverse isotropic porous formations is derived. In the following, the properties of the mode waves generated by ALWD multipole sources are investigated through the computation of dispersion and time-slowness correlation analysis of array waveforms. The results show that the velocity dispersion curves of Stoneley and quadrupole waves are sensitive to anisotropy and permeability to varying degrees and can be used for the inversion of field data. In the following, we obtained formation permeability and shear wave anisotropy parameters simultaneously based on ALWD data. The application of this method realizes comprehensive evaluation of formation permeability and anisotropy in the field data processing. The calculation results in this paper provide a theoretical basis for interpretation of ALWD in anisotropic porous formation.