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Vehicular ad-hoc network (VANET) is an emerging paradigm for road transportation which minimizes traffic, accidents and improves fuel efficiency. VANET uses the position of the vehicle obtained from satellite system such as global positioning system (GPS), global navigation satellite system, Compass and Galileo as a location id in position-based routing protocol. The position obtained from the satellite system is likely to have an error due to environmental and technical issues which effect the routing performance. Thus, this paper proposes a position-based routing protocol which uses Kalman filter based location prediction technique to improve routing performance by minimizing location error. The routing protocol performance is evaluated on NS-3.23 simulator with real time GPS traces and simulator generated mobility on Two-ray ground and Winner-II propagation model for 500 m transmission range …