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Position and direction finding are essential operations for almost every localization system. The predominantly observed trend is an increasing importance of wireless sensors, which can be explained among other things through better montage convenience hence resulting cost reduction. This paper presents an approach for tracking of orientation of industrial vehicles based on an FMCW radar system with phased array antenna. To find an orientation of mobile base station relative to stationary transponders an amplitude comparison approach has been successfully applied. Concept of position tracking realized with extended Kalman filter has been described by Mastela et al. (2003). In this paper we extended the filter concept to track an angle orientation of moving vehicle as well.