This paper describes a navigation system design for horizontal position estimation using inertial measurement sensors and celestial navigation. In space, stars are widely spread objects in the celestial sphere and have been used mainly to obtain attitude information through star observation. However, it is also possible to obtain information about the horizontal position with the altitude of the star. It is called celestial navigation which is the same principle that former navigators used to locate themselves while sailing on the sea. In particular, in deep space where GPS is not available, it is important to obtain information on the location by making use of stars that are relatively easy to observe. Therefore, we introduce a navigation system that can estimate horizontal position and design two types of systems, loosely coupled and tightly coupled depending on how the measurements are utilized. It is intended to help in the future design of navigation system using celestial navigation by simulation studies that not only verify whether the system correctly estimates horizontal position but also comparing the performance of loosely and tightly coupled methods.