The Global Positioning System (GPS) can be readily used for outdoor localization, but GPS signals are degraded in indoor environments. How to develop a robust and accurate indoor localization system is an emergent task. In this paper, we propose a smartphone inertial sensor-based indoor localization and tracking system with occasional iBeacon corrections. Some important issues in a smartphone-based pedestrian dead reckoning (PDR) approach, i.e., step detection, walking direction estimation, and initial point estimation, are studied. One problem of the PDR approach is the drift with walking distance. We apply a recent technology, iBeacon, to occasionally calibrate the drift of the PDR approach. By analyzing iBeacon measurements, we define an efficient calibration range where an extended Kalman filter is utilized. The proposed localization and tracking system can be implemented in resource-limited smartphones. To evaluate the performance of the proposed approach, real experiments under two different environments have been conducted. The experimental results demonstrated the effectiveness of the proposed approach. We also tested the localization accuracy with respect to the number of iBeacons.