This paper introduces development of location estimation and navigation system of mobile robots using USN and LEGO Mindstorms NXT. Developed system includes location estimation, location and navigation information display and navigation control parts. It used ZigBee based USN which was built with CC2431 chip to locate blind node and implemented fuzzy model to improve ability of calculation of distances from reference nodes and location of mobile robots. This paper proposed combination method of location estimation using USN and encoder which is built in motors of mobile robots. Experimental results showed proposed method is superior to the method which used USN only in location estimation and navigating robots. Developed system can locate current position of mobile robots and monitor information from sensor nodes like temperature, humidity and send control signal to mobile robot to move.