In compound noise environments, both additive noises and multiplicative noises influence the Time-of-arrival-based (TOA-based) distance measurements, which challenge the source node localization and trajectory tracking in practical sensor networks. In order to realize trajectory tracking under such noise conditions, in this paper, a compound noise parameter estimation algorithm based on Weighted Total Least Squares (WTLS) and a source node tracking algorithm based on Forney-style Factor Graph (FFG) are presented. Four parameters of the compound noise model are estimated based on ranging observations between position-known anchor nodes, and the trajectory tracking is achieved by applying a noise pre-standardized procedure in the FFG. Monte-Carlo simulations evaluate the performance of the proposed system, and the proposed noise parameter estimation algorithm performs better than the traditional Least Square (LS) method and the proposed trajectory tracking algorithm is realizable and robust.