This paper mainly discusses the problem of localization algorithm for wireless sensor network. For improving the disadvantages of high positioning error and Low coverage, an improved algorithm is proposed based on the optimum node selection determined by the received RSSI strength and virtual anchor nodes. It uses anchor node to locate which selected within 0.5 communication scope of the node by RSSI signal strength. Nodes Completed positioning upgraded to virtual anchor nodes .Complete positioning upgraded to virtual anchor nodes to help neighbors to locate. It reduces the positioning error and improves the positioning accuracy. Simulation experiment shows that the positioning performance of improved algorithm is better than traditional Bounding Box algorithm.