Multiple target tracking (MTT) in the presence of false alarms (effect of clutter) and miss detections has always been a hot topic for research in a radar system. However, there is a shortage of literature describing the complex working and components of the MTT algorithm, especially in an indoor environment. Hence, this paper proposes a unique implementation of the MTT algorithm. The various features that make the working of the MTT algorithm possible are compiled in one place and thoroughly discussed. The developed MTT algorithm is validated for all potential challenges in an indoor scene, making the developed MTT algorithm more appealing to be used in practice. Further, extensive computer simulations with real and simulated measurements validate the working of the designed MTT algorithm. Lastly, the developed MTT algorithm is also used for people counting in an indoor environment, which has a shortage in the existing literature.