In this paper, we present new received signal strength (RSS)-based indoor localization system. In indoor environment, it is not desirable to use a theoretical signal propagation path-loss model. The signal propagation is severally affected by surrounded object, especially metallic object. In order to cope with this problem, we introduce a new path-loss exponent estimation (PLE) node. This node generates a path-loss model appropriate for a given space. We then determine a mobile node's location based on the new path-loss model. Since PLE node operates in real time manner, it can robustly adapt the path-loss model for the circumstance. We evaluate our adaptive path-loss model-based localization system through actual experimental tests.