A microchip tracer just records time data but without depth, it is difficult to evaluate temperature and pressure conditions in different depth. In order to solve this problem, the method of depth location of tracer is studied in detail. The principle of Time Distribution Method( TDM) and Velocity Position Method( VPM) are discussed, which calculating upward velocity of drilling fluid and sink velocity of tracer in annulus space based on physical parameters of borehole, drilling fluid and tracer, and getting upward velocity and upward time of tracer in different section of borehole. Velocity Solution Method( VSM) is proposed for locating depth of tracer, which calculating the sink velocity of tracer based on one element multiple order equation solution, and reducing error produced by inputting inaccurate parameters. The tracer is used in a shallow well and a deep well, and obtains the entire borehole temperature respectively, the temperature in different depth point is showed with TDM and VSM. Due to the inaccurate estimation of drilling fluid performance parameters, the velocity calculated by velocity positioning method is low in shallow wells and high in deep wells. The research shows that the depth location of tracer can be obtained through such depth location methods as Time Distribution Method and Velocity Position Method. Therefore the tracer can be used to accurately evaluate the temperature and pressure of different well depths, which is of great significance for intelligent drilling technology.