Multimodal learning has advanced the performance for many vision-language tasks. However, most existing works in embodied dialog research focus on navigation and leave the localization task understudied. The few existing dialog-based localization approaches assume the availability of entire dialog prior to localizaiton, which is impractical for deployed dialog-based localization. In this paper, we propose DiaLoc, a new dialog-based localization framework which aligns with a real human operator behavior. Specifically, we produce an iterative refinement of location predictions which can visualize current pose believes after each dialog turn. DiaLoc effectively utilizes the multimodal datafor multi-shot localization, where a fusion encoder fuses vision and dialog information iteratively. We achieve state-of-the-art results on embodied dialog-based localization task, in single-shot (+7.08% in Acc5@valUnseen) and multi-shot settings (+10.85% in Acc5@valUnseen). DiaLoc narrows the gap between simulation and real-world applications, opening doors for future research on collaborative localization and navigation.