The invention discloses a positioning system for a factory production line based on an array frequency modulation continuous wave and a sensing algorithm. The positioning system comprises a 3D model building unit, a mobile device, a wireless charging unit, and the like, wherein the mobile device comprises a sensing device, and a transceiver is arranged in the 3D model building unit; the 3D model building unit is arranged in the space, and the mobile device is arranged on a measured object; the wireless charging unit is arranged at the entrance and exit of the space, and the position of the wireless charging unit is used as a sensing data collection starting point; the transceiver performs single-transmitting multi-receiving gradual circulation and performs frequency modulation on a transmitted signal, and a receiver receives a reflected signal and records original data to form a 3D Matlab image element matrix; the sensing data are collected to complete the inertial displacement calculation and trajectory formation; and 3D modeling is performed to correct the offset through a displacement trajectory to form the position and state of the object so as to display a GUI image. The positioning system disclosed by the invention can meet the needs of intelligent and efficient positioning in factory production lines, large warehouses and other places, the positioning is accurate and reliable, and large-scale commercialization can be realized.