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This paper presents a novel indoor localization and monitoring system based on inertial sensors for emergency responders. The system utilizes acceleration, angular rate and magnetic field sensors and consists of three parts. The first part is a modified Kalman filtering which implements the sensor data fusion and meanwhile detects and minimizes the magnetic field disturbances, so as to provide a long term stable orientation solution. The second part is zero velocity updating which resets the velocity within still phase to deliver accurate position information. The last part of the system is body movement monitoring, which is achieved by calculating the relative position of each body segment based on the transformation of coordinate frame of each body segment. The experimental result shows that the system is able to track person indoors in both walking and running cases, and to monitor the body movement during whole period of experiment.