We propose a novel localization method using angle-of-arrival (AoA) measurements with two-step error variance-weighted least squares (TELS). The first step is to estimate the terminal location provisionally using least squares. The second step is to estimate the terminal location using weighted least squares, with the weights for each anchor and each evaluation-function term, calculated from the error variance based on the first step. The proposed method does not require previous information on the environment while achieving high performance. The simulation results indicate that a root mean square error (RMSE) of the proposed method is superior to that of the existing hybrid received signal strength (RSS)/AoA localization methods. When 11 anchors are deployed inside a cube with edge length 15 m, and the standard deviations of measurements are small, the RMSE of the proposed method reaches about 0.34 m. It is nearly equal to that of Cramer-Rao lower bound (CRLB) on AoA. INDEX TERMS Angle-of-arrival (AoA), received signal strength (RSS), localization, error variance, least squares (LS), wireless sensor networks (WSN) I. INTRODUCTION