Location-based services (LBSs) have become pervasive, and the demand for these systems and services is rising. Indoor Positioning Systems (IPSs) are key to extend location-based services indoors where the Global Positioning System (GPS) is not reliable due to low signal strength and complicated signal propagation environment. Most existing IPSs either require the installation of special hardware devices or build a fingerprint map, which is expensive, time-consuming, and labor-intensive. Developments in microelectromechanical systems (MEMS) have resulted in significant advancements in the low-cost compact MARG inertial sensors, making it possible to achieve low-cost and high-accuracy IPSs. This research considers the indoor positioning problem and aims to design and develop an infrastructure-free self-contained indoor positioning and tracking system based on Pedestrian Dead Reckoning (PDR) using MEMS MARG inertial sensors. PDR-based systems rely on MARG inertial sensor measurements to estimate the current position of the object by using a previously determined position without external references. Many issues still exist in developing such systems, such as cumulative errors, high-frequency sensor noises, the gyro drift issue, magnetic distortions, etc. As the MARG sensors are inherently error-prone, the most significant challenge is how to design sensor fusion models and algorithms to accurately extract useful location-based information from individual motion and magnetic sensors. The objective of this thesis is to solve these issues and mitigate the challenges. The proposed positioning system is designed with four main modules at the system level and a dual-mode feature. Specifically, the four main modules are mode detection, step detection and moving distance estimation, heading and orientation estimation, and position estimation. To address the cumulative error issue of using low-cost inertial sensors, signal processing and sensor fusion techniques are utilized for algorithm design. Experimental evaluations show that the proposed position estimation algorithm is able to achieve high positioning accuracy at low costs for the indoor environment. / Thesis / Master of Applied Science (MASc) / With the maturity of microelectromechanical systems (MEMS) technology in recent years, Magnetic, Angular Rate, and Gravity (MARG) sensors are embedded in most smart devices. This research considers the indoor positioning problem and aims to design and develop an infrastructure-free self-contained MEMS MARG inertial sensor-based indoor positioning and tracking system with high precision. The proposed positioning system uses the Pedestrian Dead Reckoning (PDR) approach and includes four main modules at the system level with a dual-mode feature. Specifically, the four main modules are mode detection, step detection and moving distance estimation, heading and orientation estimation, and position estimation. The two modes are static mode and dynamic mode. To address the cumulative error issue of using low-cost inertial sensors, signal processing and sensor fusion techniques are utilized for algorithm design. The detection and estimation algorithms of each module are presented in the system design chapter. Experimental evaluations including trajectory results under five scenarios show that the proposed position estimation algorithm achieves a higher position accuracy than that of conventional estimation methods.