The indoor user localization function is in high demand for high-speed wireless communications, navigations and smart-home applications. The optical wireless technology has been used to localize end users in indoor environments. However, its accuracy is typically very limited, due to the ambient light, which is relatively strong. In this paper, a novel high-localization-accuracy optical wireless based indoor localization system, based on the use of the mechanism that estimates background light intensity, is proposed. Both theoretical studies and demonstration experiments are carried out. Experimental results show that the accuracy of the proposed optical wireless indoor localization system is independent on the localization light strength, and that an average localization error as small as 2.5 cm is attained, which is 80% better than the accuracy of previously reported optical wireless indoor localization systems.