Accurate three-dimensional (3D) localization within indoor environments is crucial for enhancing item-based application services, yet current systems often struggle with localization accuracy and height estimation. This study introduces an advanced 3D localization system that integrates updated ultra-wideband (UWB) sensors and dual barometric pressure (BMP) sensors. Utilizing three fixed UWB anchors, the system employs geometric modeling and Kalman filtering for precise tag 3D spatial localization. Building on our previous research on indoor height measurement with dual BMP sensors, the proposed system demonstrates significant improvements in data processing speed and stability. Our enhancements include a new geometric localization model and an optimized Kalman filtering algorithm, which are validated by a high-precision motion capture system. The results show that the localization error is significantly reduced, with height accuracy of approximately ±0.05 m, and the Root Mean Square Error (RMSE) of the 3D localization system reaches 0.0740 m. The system offers expanded locatable space and faster data output rates, delivering reliable performance that supports advanced applications requiring detailed 3D indoor localization.