A system and method for employing BLE nodes in a PEPS system to determine whether a FOB is within or outside of a vehicle. The method includes interrogating the FOB using a signal transmitted by a BLE device on the vehicle to determine whether the FOB is in a predetermined vicinity of the vehicle and receiving a Bluetooth signal at the BLE device that is transmitted by the FOB if the FOB is in the vicinity of the vehicle. The method also included determining a transmit power of the Bluetooth signal transmitted by the FOB and determining a receive power of the Bluetooth signal transmitted by the FOB and received by the BLE device. The method uses the transmit power and the receive power in a comparison process to determine whether the FOB is inside or outside of the vehicle.