For the accurate estimation of the position and orientation of a UUV (unmanned underwater vehicle), a low-cost AHRS (attitude heading reference system) was developed using a low-cost IMU (inertial measurement unit) sensor which provides information on the 3D acceleration, 3D turning rate and 3D earth-magnetic field data in the object coordinate system. The main hardware system is composed of an IMU sensor (ADIS16405) and TMS320F28335, which is coded with an extended kalman filter algorithm with a 50-Hz sampling frequency. Through an experimental gimbal device, good estimation performance for the pitch, roll, and yaw angles of the developed AHRS was verified by comparing to those of a commercial AHRS called the MTi system. The experimental results are here presented and analyzed.