This paper presents a magnetic matching-aided indoor localization system based on a waist-mounted self-contained sensor array. Our purpose is to localize and track the elderly in nursing homes through the proposed wearable device to ensure their safety. The device consists of a low-cost 9-axis self-contained sensor array, a microcontroller, and a WiFi transmission module. This system uses the step length and heading-based pedestrian dead reckoning (PDR) framework as the backbone to estimate the user’s position using the averaged inertial data from the sensor array. A magnetic fingerprint matching (MFM) algorithm is introduced to constrain the drift of the PDR system. Meanwhile, we construct a single-step-based hybrid magnetic fingerprint model to improve the low discernibility of the magnetic field. Finally, we propose an augmented particle filter to fuse the PDR and the MFM algorithms to enhance the system performance further. Experimental results show that 95% of the positioning error after fusion is about 1.47 m, which is 99.3% higher than that of PDR, and the average positioning error after fusion is 0.55 m, which is 61.3% higher than that of PDR. Experimental results have successfully validated the effectiveness and high performance of the proposed magnetic matching-aided wearable indoor localization system.