In many pseudolite systems which recently have been proposed and tested for indoor navigation, the method of ambiguity resolution was static initialization. Using pseudolites for static initialization, the equations are correlated with each other at observation epochs and the ambiguities can’t be calculated from the equations. The initial position of rover needed to be known in this method. In this paper, an ambiguity resolution on the fly method is proposed. The method uses kinematic initialization for ambiguity resolution instead of the assuming the initial rover position is known. To demonstrate the validity of the method, simulation results based on realistic indoor positioning environments are also studied.