The work aims to design a new location tracking system with respect to the location tracking problems encountered in the application of packaging robot in the engineering. Based on electromagnetic induction principle, the system was designed starting with hardware circuit design. The excitation signal source stimulated transmitting coil to generate an alternating magnetic field through the power amplifier circuit and a corresponding induction signal was generated in the receiving coil. A preamplifier, a band-pass filter and a programmable amplification were also adopted to achieve the induction signal conditioning. According to the amplitude values of the induction signal put into the magnetic dipole model, the position information of the sensor could be calculated. Experiments showed that the relative positioning accuracy of the electromagnetic positioning system was 1.47 mm. Location tracking system based on electromagnetic induction principle can meet packaging robot’s requirements of location tracking.