The CSS(Chirp Spread Spectrum) technology is used for developing various WPAN(Wireless Personal Area Network) application fields in general, and it can be adapted to implement localization systems especially using SDS-TWR(Symmetric Double Sided - Two Way Ranging). But the ranging errors are occurred in many practical applications due to some interferences by some experiments. Thus, the compensation algorithm for localization is required for developing localization applications. The suggested compensation algorithm that is named KF_EDR(Kalman Filter and Equivalent Distance Rate) for localization in order to reduce the ranging errors is suggested in this paper. The KF_EDR compensation algorithm for localization is mainly composed of the AEDR(Algorithm of Equivalent Distance Rate) and the Kalman Filter. It is confirmed that the improved error ratio of the KF_EDR are 10.5% and 4.2% compared with the AEDR algorithm in lobby and stadium. From the results, it is analyzed that the KF_EDR can be widely used for some localization system in ubiquitous society.