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In this paper localization and tracking of multiple unresolved targets using a colocated multiple input multiple output (MIMO) radar is addressed. The commonly-used model for colocated MIMO radars is modified in order to guarantee the observability in received measurements. Then, a maximum likelihood estimator is derived for localizing multiple targets falling within a certain resolution cell. The Cramer-Rao lower bound (CRLB) for localization with the new model is also derived. For the tracking part, a multiple-hypothesis-based approach is used to deal with the uncertainty in target state estimation. In addition, an unscented Kalman filter (UFK) based estimator is used to tackle the nonlinearity in the measurement model. Finally, the posterior CRLB (PCRLB) is derived to evaluate the consistency of tracking results. Simulation results confirm the superiority of the proposed approach in resolving multiple targets over using the standard localization results for tracking.