Navigation involves the integration of methodologies and systems for estimating the time-varying attitude of moving objects. A fiber strapdown inertial navigation system (FSINS) is presently used in several applications related to vehicle navigation. However, the absolute attitude and position from FSINS contain an error that increases with time. In order to improve the performance of FSINS based on our present inertial sensors, the auto-compensation of inertial sensor bias in rotation error modulation was proposed. The aim is to develop a rotary FSINS, in which the significant sensor bias is automatically compensated by rotating the inertial measurement unit (IMU), to offer the comparable navigation performance to navigation-grade IMU. In the proposed rotational technology, the IMU is rotated back and forth in azimuth through four orthogonal positions relative to the vehicle’s longitudinal axis. Simulation and experimental testing are conducted for the prototype, and the results showed that the rotary FSINS’s navigation performance is improved.