A method for estimating proximity between a reference communication device and a target communication device for deriving accurate straight line distance between the reference communication device and the target communication device, wherein the method is characterized in estimating the proximity based upon relative angle of orientation between the reference communication device and the target communication device thereby facilitating analysis of multipath phase effects during the estimation, the method comprising: representing a channel associated with the reference communication device and the target communication device in form of a statistical model, wherein the channel is represented in a given environment, and wherein the statistical model is based upon an equation, L d − L 0 = ( c 1 | sin 2 πd / Ω + θ | 2 + c 2 log d wherein, L d is indicative of received signal strength indicator, RSSI value at a distance 'd', wherein L 0 is indicative of RSSI value at a unit distance, wherein c 1 and c 2 are constants indicating properties of the given environment and the units of distance measurement, wherein Ω is indicative of spatial wavelength of the channel, and wherein θ is measure of multipath phase effects indicating the relative angle of orientation between the reference communication device and the target communication device; calculating values of the constants, c1 and c2, using the equation, wherein the values of the constants, c1 and c2, are calculated by a constant value calculation module, and wherein the values of the constants (c 1 and c 2) are calculated corresponding to RSSI values captured for known distances; capturing a received signal strength indicator, RSSI value from the target communication device by the reference communication device using a RSSI capturing module; and deriving an accurate straight line distance between the reference communication device and the target communication device by using a straight line distance derivation module, wherein the distance is derived by, substituting in the equation, the values of the constants, c1 and c2, calculated, the received signal strength indicator, RSSI value, the RSSI value at a unit distance, the spatial wavelength of the channel and the relative angle of orientation between the reference communication device and the target communication device. representing a channel associated with the reference communication device and the target communication device in form of a statistical model, wherein the channel is represented in a given environment, and wherein the statistical model is based upon an equation, L d − L 0 = ( c 1 | sin 2 πd / Ω + θ | 2 + c 2 log d wherein, L d is indicative of received signal strength indicator, RSSI value at a distance 'd', wherein L 0 is indicative of RSSI value at a unit distance, wherein c 1 and c 2 are constants indicating properties of the given environment and the units of distance measurement, wherein Ω is indicative of spatial wavelength of the channel, and wherein θ is measure of multipath phase effects indicating the relative angle of orientation between the reference communication device and the target communication device; calculating values of the constants, c1 and c2, using the equation, wherein the values of the constants, c1 and c2, are calculated by a constant value calculation module, and wherein the values of the constants (c 1 and c 2) are calculated corresponding to RSSI values captured for known distances; capturing a received signal strength indicator, RSSI value from the target communication device by the reference communication device using a RSSI capturing module; and deriving an accurate straight line distance between the reference communication device and the target communication device by using a straight line distance derivation module, wherein the distance is derived by, substituting in the equation, the values of the constants, c1 and c2, calculated, the received signal strength indicator, RSSI value, the RSSI value at a unit distance, the spatial wavelength of the channel and the relative angle of orientation between the reference communication device and the target communication device. calculating values of the constants, c1 and c2, using the equation, wherein the values of the constants, c1 and c2, are calculated by a constant value calculation module, and wherein the values of the constants (c 1 and c 2) are calculated corresponding to RSSI values captured for known distances; capturing a received signal strength indicator, RSSI value from the target communication device by the reference communication device using a RSSI capturing module; and deriving an accurate straight line distance between the reference communication device and the target communication device by using a straight line distance derivation module, wherein the distance is derived by, substituting in the equation, the values of the constants, c1 and c2, calculated, the received signal strength indicator, RSSI value, the RSSI value at a unit distance, the spatial wavelength of the channel and the relative angle of orientation between the reference communication device and the target communication device.