A novel laser-beacon localization system has been developed which has applications in positioning and navigation of mobile ground or aerial vehicles where other forms of localization are absent (e.g. GPS or radio). The system allows for position determination within an area of interest with reasonable accuracy. Model results and initial prototype have shown that the concept of dual angle-encoded beacons is a valid approach for determining relative location in a sterile environment. A prototype of the system has been realized and initial system testing has been promising with consistent results, indicating that the assumed error levels for the model were reasonable. Testing is underway to validate the results of the model and demonstrate the feasibility of the system. Based on lessons learned thus far, optimizations are planned which should lead to increases in performance of the system as realized in the model, such as actively tracking the location of the beacons once their location is initially known.