A vehicle navigation system with a display correction and the display correction method thereof, which first extracts a current display location and corresponding road links, next extracts a next vehicle location and selects all road links ranging within 25 meters from the next vehicle location to generate a first set of road links, next generates a second set of road links from the first set of road links based on an angle of driving direction generated by the gyroscope, next computes vertical distances from the next vehicle location to the second set of road links and selects a road link with a shortest vertical distance, and sets a projection point of the next vehicle location on the road link with the shortest vertical distance to become a next corrected location and displays the vehicle sign on the display screen at a next display location corresponding to the next corrected location.