Abstract: As accumulative error remains a problem in indoor positioning and navigation algorithm. A new indoor personal navigation algorithm based on the fusion of micro-electro mechanical system (MEMS) and smartphone electronic compass was proposed. The navigation algorithm was based on the traditional inertial navigation algorithms, adopting the algorithm of the zero velocity detection and update algorithm to detect the stationary state through people walking according to human walking characteristics, and then regulating speed and location information of pedestrians during their static moment through zero velocity update algorithm to improve accuracy of system navigation. And a large deviation of pedestrians movement direction was caused by gyroscope drift of MEMS inertial device. The pedestrians heading was regulated through the Smartphone electronic compass data combined with moving average filter algorithm, and the accuracy of pedestrians movement direction was improved. In the end, the results of experiments indicate that the navigation error correction algorithm is feasible and effective.