A system and method for navigation within a surgical field are presented. In exemplary embodiments according to the present invention a micro-camera can be provided in a hand-held navigation probe tracked by a tracking system. This enables navigation within an operative scene by viewing real-time images from the viewpoint of the micro-camera within the navigation probe, which are overlaid with computer generated 3D graphics depicting structures of interest generated from pre-operative scans. Various transparency settings of the camera image and the superimposed 3D graphics can enhance the depth perception, and distances between a tip of the probe and any of the superimposed 3D structures along a virtual ray extending from the probe tip can be dynamically displayed in the combined image. In exemplary embodiments of the invention a virtual interface can be displayed adjacent to the combined image on a system display, thus facilitating interaction with various navigation related functions. In exemplary embodiments according to the present invention virtual reality systems can be used to plan surgical approaches with multi-modal CT and MRI data. This allows for generating 3D structures as well as marking ideal surgical paths. The system and method presented thus enable transfer of a surgical planning scenario to a real-time view of an actual surgical field, thus enhancing navigation.