We propose an algorithm for multitarget tracking by particle filtering in wireless sensor networks based on received signal strength (RSS) measurement where we also localize a newly appearing target whose location and reference power are unknown. Therefore, the number, the reference power, and the initial locations of targets are unknown in this problem. At the initial localization step, we apply approximate least squares (LS) method to roughly estimate the target location. After the initial location is estimated, we estimate the reference power. This is possible because we can use multiple number of measurements for estimating multiparameters. The proposed approach is particularly emphasized on the initialization step that completes the whole multitarget tracking system by particle filtering in a challenging scenario. The proposed approach is validated by computer simulations for its effectiveness.