Accurate location estimation is very important in WSNs, for a number of applications' requirement. Due to the hardware limitation in WSN devices, range-free schemes are more appropriate for WSNs than rage-based schemes. A novel localization algorithm, RDV-hop localization algorithm, is proposed in this paper. The reason leading to error in original DV-hop has been analyzed and the refinement has been done. We also replace the ML localization algorithm with Hyperbolic location algorithm with better performance results. Simulations have been conducted to prove that RDV-hop performs more accurately than DV-hop, and the accuracy is improved by 24.9% on average.