Ranging technology based on RSSI has quite large ranging error, since there are existing impacts of wireless location in indoor environment and multi-path transmission. Aiming at this problem, a method using RBF feedforward neural network to compensate RSSI ranging error affected by the external environment was proposed. The method how to take advantage of the RBF neural network data fusion method to compensate the RSSI ranging sensor error was introduced. Indoor ranging instance was given. The practical application shows that the compensation method significantly improves the accuracy of the distance measurement, it is suitable for RSSI ranging with high precision requirements or in complex environment.