The invention discloses an RFID (radio frequency identification) indoor positioning system and method of a narrow-band Mesh network. According to different positions of information processing terminals, a data link scheme of the RFID indoor positioning system includes that in field application, a 470M wireless communication module directly transmits effective tag information and RSSI (received signal strength indicator) field strength and the like read by an RFID reader back to an upper computer for resolving the position information via a serial port; in remote application, the 470M wireless communication module directly transmits the effective tag information and the RSSI field strength and the like read by the RFID reader back to aggregation nodes via the serial port, and transmits the information to the remote information processing terminals at an appointed socket port. The purposes of the present invention of providing the data link scheme which is stable and efficient and convenient to deploy for a distributive RFID reading device in the indoor positioning system, and providing data path guarantee for the information processing terminals at the far end or on site to resolve the position information of the radio-frequency tags in time are achieved.