An indoor positioning system ( IPS) is designed to realize positioning and tracking of mobile targets, by taking advantages of both the visible light communication ( VLC) and inertial measurement unit ( IMU) . The platform of the IPS is designed, which consists of the light-emitting diode ( LED ) based transmitter, the receiver and the positioning server. To reduce the impact caused by measurement errors, both inertial sensing data and the received signal strength ( RSS) from the VLC are calibrated. Then, a practical propagation model is established to obtain the distance between the transmitter and the receiver from the RSS measurements. Furthermore, a hybrid positioning algorithm is proposed by using the adaptive Kalman filter ( AKF) and the weighted least squares ( WLS) trilateration to estimate the positions of the mobile targets. Experimental results show that the developed IPS using the proposed hybrid positioning algorithm can extend the localization area of VLC, mitigate the IMU drifts and improve the positioning accuracy of mobile targets.