With the popularity of Bluetooth devices and the promotion of Bluetooth Specification Version 4.0, the indoor location technology based on the Bluetooth devices develops rapidly. Aiming at the huge demands of the indoor location service, a precise Bluetooth positioning system with a linear-weighted algorithm is presented. The system combines Bluetooth devices with linear-weighted algorithm. It locates the mobile devices through weighting the value of the received signal strength indicator, the link quality, and the transmit power level of the Bluetooth wireless communication link. The simulation results show that the average of location error in this algorithm is less than 1.5m, which meets certain accuracy requirements.