Mutual localization stands as a foundational component within various domains of multi-robot systems. Nevertheless, in relative pose estimation, time synchronization is usually underappreciated and rarely addressed, although it significantly influences estimation accuracy. In this paper, we introduce time synchronization into mutual localization to recover the time offset and relative poses between robots simultaneously. Under a constant velocity assumption in a short time, we fuse time offset estimation with our previous bearing-based mutual localization by a novel error representation. Based on the error model, we formulate a joint optimization problem and utilize semi-definite relaxation (SDR) to furnish a lossless relaxation. By solving the relaxed problem, time synchronization and relative pose estimation can be achieved when time drift between robots is limited. To enhance the application range of time offset estimation, we further propose an iterative method to recover the time offset from coarse to fine. Comparisons between the proposed method and the existing ones through extensive simulation tests present prominent benefits of time synchronization on mutual localization. Moreover, real-world experiments are conducted to show the practicality and robustness.