In this paper, a passive-intermodulation-based tracking system working with a frequency-modulated continuous-wave (FMCW) is proposed for target identification and localization. Signals in the microwave range are chosen to realize ranging purposes for the benefits of small device size, lightweight, and wide available bandwidth. Depending on whether the nonlinear properties of electrical components, such as diodes, transistors, and mixers, are exploited, the tracking systems can be categorized as linear and nonlinear systems. By nature, the linear tracking methods are vulnerable to surrounding clutter, such as furniture, walls, and other objects, since the reflection signals from clutter are of the same nature as the target. In comparison, the nonlinear detection methods are attractive owning to the fact that the majority of the clutter does not possess nonlinear properties. Hence, the nonlinear detection system does not “see” the linear clutter and only senses the target exhibiting nonlinear responses. Among all the nonlinear technologies, the intermodulation-based tracking and mapping approach has less path loss than the harmonic-based, smaller circuit size than the subharmonic-based, and simpler tag design and fewer signal licenses required than both of its counterparts. Therefore, in this work, the intermodulation-based technology is adopted, and a new nonlinear tracking system is designed to track the distance of the target in a complex indoor scenario crowded with unwanted objects.