A method and system for degimbalization of sensor outputs is provided. Data output from an embedded GPS inertial navigation system (EGI), which is mounted within a gimbaled system on a vehicle, is processed to provide degimballed navigation data. Generally, motion of the EGI is due to the vehicle motion and the gimbal motion. To provide navigation information relating solely to the vehicle, effects of the gimbal motion within the EGI outputs can be removed.