Location Awareness is one of the challenging issues in wireless sensor network. Location awareness can help to carry target tracking, improved routing efficiency and quality of coverage. Location algorithms are used to identify the exact location from where the sensor reading originates. An effective localization algorithm can then use all the available information from the wireless sensor nodes to infer the position of the individual devices. In this field, accuracy plays an important role. Various Localization algorithms have been proposed and each has its own reason of benefits and limitations. The performance of localization algorithms will depend on critical sensor network parameters, such as the radio range, the density of nodes, and the anchor-to-node ratio. Performance of Centroid, DV-hop algorithm is compared. Distance Based Centroid algorithm is proposed which increases the accuracy in wireless sensor network to solve localization problem.