In Wireless Sensor Networks, nodes are positioned arbitrarily and finding location of nodes is difficult. In this network, the nodes need to know their location is important for indoor applications. In this applications signals are affected by various factors such as noise, multipath, NLOS etc. This impact on inaccurate location information of node, which leads finding path to the destination node is difficult. Cooperative location based routing is alternative solution for finding better path. In this paper a solution is proposed for effective route in indoor application of WSN. The proposed solution uses Particle Swarm Optimization assisted Adaptive Extended Kalman Filter (PSO-AKF) for finding location of nodes. In this mechanism, finding accurate position of node impact on network performance such as minimization of delay, location error and also minimizes complexity.