The dead-reckoning system is one well-known localization method based on measuring relative positions. The dead-reckoning system has the advantage of a high sampling rate and outstanding accuracy over short intervals. However, this system cannot avoid an inevitable accumulation of errors because of the time-integral term between current direction and distance. In particular, the cumulative error in the direction angle may cause an infi nitely large positioning error as time passes. 1,2 In order to detect the location of people inside a building, an active badge system with infrared rays has been researched. However, this system has problems such as the short communication distance and a weak performance against sunshine. 4 An active beacon system with ultrasonic sensors is known for its relatively accurate performance and low power consumption. However, this method can be infl uenced by any obstacle between the transmitter and the receiver, the external temperature, and noise. 5 The localization method using a landmark or RFID is robust to changes in the external environment such as temperature or solar light. However, it has a fatal defect in that it can be applied only to a limited space where a RFID tag or landmark can be attached. In addition, it is impossible to use it outdoors. 3,4 To recognize an absolute position outdoors, a GPS is the most powerful localization method. However, it is limited to the area of the GPS signal and has a low positional accuracy. 6 A meaningful and still unsolved problem for most applications is to develop a robust positioning system. Therefore, this article is concerned with how to localize and navigate a mobile robot without any landmarks, or in a limited detection range, in an unknown environment. To solve these problems, we propose a new localization algorithm using a virtual label algorithm. The proposed method is based on virtual labeling techniques. Here, we use a laser range fi nder and an encoder in an indoor environment. In an outdoor environment, a GPS alone is adopted to calculate the initial position.This article is divided into the following sections: generation of range fi nder scans (Sect. 2), localization with a virtual label algorithm (Sect. 3), experimental results of implemenAbstract Scanning laser range sensors provide range data consisting of a set of point measurements. The laser sensor URG-04LX has a distance range of approximately 0.02-4 m and a scanning angle range of 240˚. Usually, such an image range is acquired from one viewpoint by "moving" the laser beam using rotating mirrors/prisms. The orientation of the laser beam can easily be measured and converted into the coordinates of the image. This article conducts localization using virtual labels with data about distances in the environment obtained from 2D distance laser sensors. This method puts virtual labels on special features and points which are along the mobile robot's path. The current location is calculated by combining the virtual label and the range image of the laser range fi nder.