Abstract: The affection of the distance-measuring error in localization was analyzed by using maximum likelihood estimation (MLE). A location algorithm based on LMS adaptive filter for error correction was proposed. The coordinators of the unknown nodes and location error information were obtained by using MLE. The distance-measuring error matrix was established and the parameters of the LMS adaptive filter were updated, which can restrain the distance-measuring error of the whole network, thus the location information of the unknown nodes was refined. The simulations show that after optimized by distance-measuring error matrix of pseudo anchor itself and the unknown nodes, the positional accuracy of network are improved compared to MLE. The algorithm proposed in this paper is applicable to self-localization of nodes in networked ammunitions system with low anchor node density and low SNR (signal-noise ratio).