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The two-step indoor location estimation method based on received signal strength in wireless sensor network is proposed. Measuring the received signal strength (RSS) of radio signals transmitted by multiple training points in wireless sensor network, least-squares approach has been applied to determine parameters of signal propagation model. Consider the estimated parameters of the signal propagation model obtained in the first step, minimum mean squares error (MMSE) method is applied to estimate the position of target node. Experiment results show that the proposed method has good performance.