A vast majority of target tracking algorithms are developed with the assumption of infinite sensor resolution, where a measurement only has one source. This assumption is not valid for real sensors. Therefore, a multi-target tracking algorithm is presented, which utilizes a simple structure of LM tracking procedure to obtain a LM finite resolution(LMfr) tracking procedure. Then the method is combined with IPDA to form a multi-target tracking method which is the so-called LMfr-IPDA. A simulation study is presented which compares LMfr-IPDA with LM-IPDA and IPDA target tracking in a
cluttered environment utilizing a finite resolution sensor with six crossing targets. The study concentrates on the false track discrimination performance and the track retention capabilities. The simulation results show the effectiveness of the method.