This paper presents an improved propagation channel model for the visible light in indoor environments. We employ this model to derive an enhanced positioning algorithm using on the relation between the time-of-arrivals (TOAs) and the distances for two cases either by assuming known or unknown transmitter and receiver vertical distances. We propose two estimators, namely the maximum likelihood estimator and an estimator by employing the method of moments. To have an evaluation basis for these methods, we calculate the Cramer–Rao lower bound (CRLB) for the performance of the estimations. We show that the proposed model and estimations result in a superior performance in positioning when the transmitter and receiver are perfectly synchronized in comparison to the existing state-of-the-art counterparts. Moreover, the corresponding CRLB of the proposed model represents almost about 20 dB reduction in the localization error bound in comparison with the previous model for some practical scenarios.