Pseudolites are ground-based transmitters that send global navigation satellite system like signals, such as GPS, GLONASS, or Galileo. As an independent system for indoor positioning, pseudolites technique can be explored for a wide range of positioning and navigation application where the signal of satellite GNSS can’t be received. However, with indoor environment, the positioning method of pseudolite navigation system is not entirely same as GNSS, and there are some challenging issues in research and system design. In this paper, a signal difference carrier phase measurement system with pseudolites is design. Furthermore, two major problems are studied that they are multipath error and linear errors.