Disclosed is an indoor positioning device which comprises a base, a light source mounted on the base, a rotating part, a rotating outer shell and a controller; the rotating outer shell is a hemispherical shell body or a shell body being tangent externally with a hemispherical surface; a luminous point is located at a spherical center of the rotating outer shell; the rotating outer shell is divided into a plurality of encoded rings, each encoded ring is divided into a plurality of encoding bits, a angle β of each encoding bit in a latitudinal direction is 360/N degrees, different encoded rings has different arrangements of encoding bits; in each encoded ring, some encoding bits are in a transparent state, there is no arrangement of two continuous opaque encoding bits, some encoding bits arranged in a specified style constitute a start bit or an end bit; once a light barrier of the rotating part passes through an optical coupler, the light source generates a frequency hopping; a receiver senses an optical signal and performs positioning. According to the special rotating outer shell and the frequency hopping light source, and in combination with the receiver, the optical signal can be sensed and positioning can be implemented. The indoor positioning device has a simplified structure and the method for indoor positioning is novel, accurate, has a good stability and a low cost, and is applicable to indoor positioning with high precision.