To achieve autonomous mobile robot navigation, accurate localization technique is the fundamental issue that should be addressed. In augmented reality, the position of a user is required for location-based services. This paper presents indoor localization using infrared reflective artificial landmarks. In order to minimize the disturbance to the user and to provide the ease of installation, the passive landmarks are used. The landmarks are made of coated film which reflects the infrared light efficiently. Infrared light is not visible, but the camera can capture the reflected infrared light. Once the artificial landmark is identified, the camera’s relative position/orientation is estimated with respect to the landmark. In order to reduce the number of the required artificial landmarks for a given environment, the pan/tilt mechanism is developed together with the distortion correction algorithm.