An image-augmented inertial navigation system (LAWS) mounted on a vehicle (10) includes an inertial navigation system (INS) configured to estimate a navigation state vector and an imager (12) configured to output pixel signals associated with terrain features passing through a field of view (x, y, z) of the imager. The system (IAINS) further includes a processing unit operatively connected to the inertial navigation system (INS) and the imager (12). The processing unit is configured to sense a distance from the imager to a centroid of one or more of the terrain features passing though a field of view of the imager for a given image frame associated with the feature pixel signals. The processing unit is also configured to track each terrain feature as the terrain features pass through the field of view of the imager. The processing unit is further configured to update the navigation state vector of the inertial navigation system (INS) based on calculated NED (North, East, Down) coordinates position information of the inertial navigation system (INS) relative to the tracked terrain features.