Abstract: Indoor positioning in certain occasions has a widely application. The traditional RSSI based positioning algorithm cannot meet the requirements of indoor positioning due to its larger measurement errors. In this work, the MUSIC method is proposed to estimate the direction of arrival (DOA) of signals. However, traditional MUSIC algorithm is only suitable for non coherent signal, not for the indoor environment where there exist severe multi path effects. Aiming at this shortcoming, Toeplitz matrices are constructed in this work to eliminate the relativity and obtain the correct estimate for the DOA of multi path signals.