Although Micro Electro Mechanical Systems (MEMS) inertial navigation systems (INS) have the advantages of small size and low power consumption, the error of MEMS inertial navigation system rapidly accumulates with time. In order to suppress the navigation error caused by inertial device error, this paper uses rotation modulation technology to eliminate the constant bias and slowly varying errors of MEMS inertial devices. The rotation modulation technology of INS usually requires high-precision rotation and control mechanisms, but the cost and size of motor and control mechanism reduce the advantages of MEMS INS. Therefore, in this paper, a rotating modulation algorithm of MEMS INS installed on wheels is proposed when MEMS INS is applied to vehicle navigation, and the rotation modulation algorithm of MEMS INS is realized by the rotation of wheels, so as to improve the navigation accuracy.