The use of ubiquitous network has made real time tracking of objects, animals and human beings easy through the use of radio frequency identification system (RFID). Localization techniques in RFID rely on accurate estimation of the read range between the reader and the tags. The tags consist of a small chip and a printed antenna which receives from and transmits information to the reader. The range information about the distance between the tag and the reader is obtained from the received signal strength indication (RSSI). Accuracy of the read range using RSSI can be very complicated especially in complicated propagation environment due to the nature and features of the environment. There are different kinds of localisation systems and they are Global Positioning System (GPS) which can be used for accurate outdoor localization; while technologies like artificial vision, ultrasonic signals, infrared and radio frequency signals can be employed for indoor localization. This project focuses on the location estimation in RFID Non Line-of-Sight (NLOS) environment using Real Time Localization System (RTLS) with passive tags, in carrying out passengers and baggage tracking at the airport. Indoor location radio sensing suffers from reflection, refraction and diffractions due to the nature of the environment. This unfavourable phenomenon called multipath leads to delay in the arrival of signal and the strength of signal received by receiving antenna within the propagation channel which in turns affects the RSSI, yielding inaccurate location estimation. RTLS based on time difference of arrival and error compensation technique and extended Kalman filter technique were employed in a NLOS environment to determine the location of tag. The better method for location estimation in a NLOS between the Kalman filtering and extended Kalman filtering is investigated. According to simulation results, the extended Kalman filtering technique is more suitable to be applied to RTLS.