With recent advancements in autonomous driving, the demand for precise and accurate perception systems has increased. Perception of the vehicle’s environment is a key element in ensuring safe operation. Due to their wide aperture angle and low cost, ultrasonic sensors are a viable option for achieving close-range 360° perception around the vehicle. This thesis investigates and evaluates the use of ultrasonic sensors for detection and tracking of objects and vulnerable road users in an SAE-level 4 autonomous vehicle. The thesis focuses on optimizing ultrasonic sensors for their designated measurement task and optimizing the positions of ultrasonic sensors on the vehicle. Furthermore, it explores different detection and tracking methods to investigate whether an ultrasonic detection system is indeed a viable candidate for close-range detection and tracking.