We demonstrate that the orbital eccentricity in compact binary mergers can be used to improve their sky localization using gravitational wave observations. Existing algorithms that conduct the localizations are not optimized for eccentric sources. We use a semi-Bayesian technique to carry out localizations of simulated sources recovered using a matched-filter search. Through these simulations, we find that if a non-negligible eccentricity is obtained during the detection, an eccentricity-optimized algorithm can significantly improve the localization areas compared to the existing methods. We also lay out the foundation for an eccentric early-warning system using the matched-filter search. The potential impact on the early-warning localization is investigated. We indicate a few possible cases of improvements while accounting for eccentricity toward any detectable eccentric neutron star binaries in the forthcoming observing scenarios of ground-based detectors. Improved localizations can be useful in effectually utilizing the capabilities of the follow-up facilities.