In the guided missile and unmanned vehicle system, the navigation system is one of the most important components. Recently, low-cost effective smart projectiles and guided bomb are being developed using MEMS based navigation system which has high-G, low-cost and small size. In this paper, locally developed MEMS based GPS/INS integrated navigation system will be introduced in comparison with the state of the art of MEMS based navigation system. And technical design and development method is described to satisfy the required performance of GPS receiver, MEMS inertial sensor assembly, navigation computer and software.