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This paper made a good many research on the related theory about indoor localization technology, and pointed out the key techniques for the proposed remote wireless monitoring system solution for radioactive sources. Because of the specificity of system monitoring objects-radioactive sources, ZigBee technology was adopted to implement the monitoring system, by studying the typical indoor localization technology. Functional requirements and difficulties in implementation, during the indoor localization of radioactive sources, were analyzed from three points of view. After the detailed planning of the ZigBee network nodes, the indoor wireless localization system for radioactive sources was designed. Four major functional modules, including system management, serial communication, data processing, and data storage, were devised to realize the host computer. Testing environment was constructed to test the localization system. Test results show that the indoor wireless localization system can meet users' requirements, controlling the localization error in the range of 3m.