This paper presents an implementation of a real-time multi-sensor data fusion algorithm for Flight Test Computer. The sensor data consist of positional information of the target from a radar, a GPS receiver and an INS. The data fusion algorithm is designed by the 21st order distributed Kalman Filter which is based on the PVA model with sensor bias states. A fault detection and correction logics are included in the algorithm for bad measurements and sensor faults. The statistical parameters for the states are obtained from Monte Carlo simulations and covariance analysis using test tracking data. The designed filter is verified by using real data both in post processing and real-time processing.