Indoor positioning and navigation is an essential field of location-based service. Non-line of sight (NLOS) error restricts the accuracy of indoor positioning. Many researchers have studied the localization problem in indoor NLOS environments, but there is still a problem that NLOS error cannot be mitigated in unknown areas. To solve the above problems, this paper proposes a method of constructing virtual base stations in unknown areas (UA-VBS), and presents the corresponding positioning algorithm to calculate the location of the user equipment. Firstly, the base stations are selected and the initial positioning is carried out. Then, multiple virtual base stations are constructed according to the user equipment positions in the first three steps. The LOS base stations and virtual base stations participate in the TDOA calculation together, and calculate the base stations’ combination with the minimum residual and the corresponding positioning result. Finally, the pedestrian dead reckoning fusion weight is updated by the residual value, and the accurate positioning result in NLOS environment is obtained. Simulation and experimental results show that the proposed algorithm has high positioning accuracy and stability in NLOS environment.
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