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An effective indoor localization method of hybrid RSSI/TDOA is proposed to reduce the big errors occurred during indoor RSSI localization and high cost paid by TDOA localization. It measures RSSI with iterative recursive weighted average filter, and polynomial model is obtained to fitting the RSSI measurement and to obtain polynomial model. Furthermore the hybrid RSSI/TDOA localization algorithm is employed. The experiment results show that the proposed method of iterative recursive weighted average filter will improve the accuracy of RSSI localization on the condition of lower computation complexity, and the achieved localization is more accurate in the polynomial fitting than in the log-normal shadowing model. Moreover, the indoor location accuracy in the experiment is approximate 0.5 meter that satisfies the precision requirement of indoors location precision.