Abstract: The localized method of fundamental solutions (LMFS) is proposed in this paper for solving two-dimensional boundary value problems, governed by Laplace and biharmonic equations, in complicated domains. Traditionally, the method of fundamental solutions (MFS) is a global method and the resultant matrix is dense and ill-conditioned. In this paper, it is the first time that the LMFS, the localized version of the MFS, is proposed. In the LMFS, the solutions at every interior node are expressed as linear combinations of solutions at some nearby nodes, while the numerical procedures of MFS are implemented within every local subdomain. The satisfactions of governing equation at interior nodes and boundary conditions at boundary nodes can yield a sparse system of linear algebraic equations, so the numerical solutions can be efficiently acquired by solving the resultant sparse system. Six numerical examples are given to demonstrate the effectiveness of the proposed LMFS.