A micro integrated Global Positioning System (GPS)/Inertial Measurement Unit (IMU) System, which is adapted to apply to output signals proportional to rotation and translational motion of a carrier and GPS measurements of the carrier, respectively from angular rate sensors, acceleration sensors, and GPS chipset, is employed with MEMS angular rate and acceleration sensors and GPS chipset. Compared with a conventional IMU/GPS system, the system of the present invention uses an integrated processing scheme by means of digital closed loop control of the dither driver signals for MEMS angular rate sensors, a feedforward open-loop signal processing scheme of the IMU, digital temperature control and compensation, the earth's magnetic field-based heading damping, robust error estimator, and compact sensor and circuit architecture and dramatically shrinks the size of mechanical and electronic hardware and power consumption, meanwhile, obtains highly accurate motion measurements.