Bluetooth is a short range wireless communication protocol. However, the discovery process to establish connection in Bluetooth network is very time consuming process. This paper presents localization techniques for Bluetooth networks. There is an increasing interest in location identification, and communication with other Bluetooth devices within a local area network. The idea behind localization techniques is to address position estimation in Bluetooth networks in order to reduce the time taken for device discovery to establish connection process. In this paper Received Signal Strength Indicator (RSSI) is obtained using Inverse square law. The Received Power (Prx) is obtained indirectly by converting RSSI values to Prx using Friis equation. Positioning is based on Prx and converted to estimate the distance using simple radio propagation model based on Friis equation. The advantage of positioning is to know the object actual position with respect to the distance from the transmitter. The relationship obtained from positioning using Prx will be used to minimize the discovery time in connection establishment process in Bluetooth networks. This work is part of the design process of roaming protocol for Bluetooth networks. © 2010 IEEE.