Despite significant progress in autonomous navigation, a critical gap remains in ensuring reliable localization in hazardous environments such as tunnels, urban disaster zones, and underground structures. Tunnels present a uniquely difficult scenario: they are not only prone to GNSS signal loss, but also provide little features for visual localization due to their repetitive walls and poor lighting. These conditions degrade conventional vision-based and LiDAR-based systems, which rely on distinguishable environmental features. To address this, we propose a novel sensor fusion framework that integrates a thermal camera with a LiDAR to enable robust localization in tunnels and other perceptually degraded environments. The thermal camera provides resilience in low-light or smoke conditions, while the LiDAR delivers precise depth perception and structural awareness. By combining these sensors, our framework ensures continuous and accurate localization across diverse and dynamic environments. We use an Extended Kalman Filter (EKF) to fuse multi-sensor inputs, and leverages visual odometry and SLAM (Simultaneous Localization and Mapping) techniques to process the sensor data, enabling robust motion estimation and mapping even in GNSS-denied environments. This fusion of sensor modalities not only enhances system resilience but also provides a scalable solution for cyber-physical systems in connected and autonomous vehicles (CAVs). To validate the framework, we conduct tests in a tunnel environment, simulating sensor degradation and visibility challenges. The results demonstrate that our method sustains accurate localization where standard approaches deteriorate due to the tunnels featureless geometry. The frameworks versatility makes it a promising solution for autonomous vehicles, inspection robots, and other cyber-physical systems operating in constrained, perceptually poor environments.