Abstract: Bluetooth 4.0 technology has been widely used in mobile phone, tablet computer and mobile terminal equipment.Meanwhile, it makes using of the indoor position has a very broad application prospects. In this report, according to the investigation of the Bluetooth 4.0 technology, to classify as close degree in terms of the loss characteristics of Bluetooth 4.0 RSSI, it proposes an improved algorithm to define the region k-nearest neighbor. Using the optimized algorithm of RSSI fingerprint positionto makes average error of indoor position reach decimeter level. Thus it fully satisfies commercial demand in terms of position accuracy of indoor LBS “decimeter level” and response of “Second level”.

Key words: Indoor location, Bluetooth, Signal strength