Abstract: The problems of RFID indoor positioning algorithm LANDMARC are optimized. In view of the abnormal correlation degree of local reference tags inLANDMARC, this paper repairs the correlation degree of local bad tags. Aimed at the problem of label mis-selection in the process of selecting adjacent labels, an improvement of minimum target area block was proposed to reduce the influence of bad labels, and the location of target labels was estimated. Simulation results show that the proposed optimization scheme is significantly improved compared with the original algorithm, the positioning accuracy is increased by 22%, and the maximum error is reduced by 27%.