In this paper, a received signal strength indicator (RSSI)-based parameter tracking strategy for constrained position localization is proposed. To estimate channel model parameters, least mean squares method (LMS) is associated with the trilateration method. In the context of applications where the positions are constrained on a grid, a novel tracking strategy is proposed to determine the real position and obtain the actual parameters in the monitored region. Based on practical data acquired from a real localization system, an experimental channel model is constructed to provide RSSI values and verify the proposed tracking strategy. Quantitative criteria are given to guarantee the efficiency of the proposed tracking strategy by providing a trade-off between the grid resolution and parameter variation. The simulation results show a good behavior of the proposed tracking strategy in the presence of space-time variation of the propagation channel. Compared with the existing RSSI-based algorithms, the proposed tracking strategy exhibits better localization accuracy but consumes more calculation time. In addition, a tracking test is performed to validate the effectiveness of the proposed tracking strategy.