Indoor positioning has gained popularity recently due to its potential to be used in the increasing complexity of indoor environment. Unfortunately GPS signals are restricted to outdoor purposes. The main objective of this work is to design a new method to develop indoor positioning navigation system without using wireless technology through image processing. Apart from that, the work also aims to develop an interactive indoor navigation system. Augmented reality is being used to superimpose the directional signage on the real view of the indoor environment in 3D form. Along with the 3D guides, voice guidance will be output from the system to assist users in identifying their locations easily. Overall, the scope of study involves research on augmented reality, audio API, and other additional techniques that can improve the program in computing the route. The idea of this work can be broadly applied to mobile devices such as mobile phones and PDA as an added indoor navigation functionality without the use of GPS and wireless communication. The proposed system has been tested at the ground floor of the Information Resource Centre (IRC) in Universiti Teknologi PETRONAS and the results show the flexibility of the system in navigating 12 locations and ability to handle up to 30 possible routes. © 2011 IEEE.