The indoor fingerprinting localization technology has received more attention in recent years due to the increasing demand of the indoor location based services (LBSs). However, a high quality of the LBS requires a positioning solution with high accuracy and low computational complexity. The particle swarm optimization (PSO) technique, which emulates the social behavior of a flock of birds to search for the optimal solution of a special problem, can provide attractive performance in terms of accuracy, computational efficiency and convergence rate. In this paper, we adopt the PSO algorithm to estimate the location information. First, our system establishes a Bayesian-rule based objective function. It then applies PSO to identify the optimal solution. We also propose a hybrid access point (AP) selection method to improve the accuracy, and analyze the effects of the number and the initial positions of particles on the localization performance. In order to mitigate the estimation error, we use the Kalman Filter to update the initial estimated location via the PSO algorithm to track the trail of the mobile user. Our analysis indicates that our method can reduce the computational complexity and improve the real-time performance. Numerous experiments also demonstrate that our proposed localization and tracking system achieve higher localization accuracy than existing systems.