The design and implementation of a personal navigation system including activity monitoring function is given in this paper. The system consists of a 3 dimensional MEMS accelerometer, digital compasses and ZigBee communication. An accelerometer and digital compasses are used to compute the position and activity. The obtained position and activity information is transmitted to a fixed beacon via ZigBee. At the same time, activity information is stored in the personal navigation system to a batch analysis program. The step detection algorithm which is robust to attaching location is proposed. Also two digital compass error compensation algorithms are proposed to find more precise headings. The experiments with a real system show that the activities of users and continuous locations less than 1.5m errors are obtained after 80m walking.