A description is given of a floated rate-integrating gyroscope and of the way in which it may be used to provide a high-accuracy aircraft heading reference. The sources of error of the system are examined and the overall heading accuracy is estimated as being comparable with the distance accuracy of a doppler system. This paper was presented, on 15 January, at the same Ordinary Meeting of the Institute as the preceding paper by Green and Glenny.The advent of the high-accuracy single-axis floated gyroscopes which have been developed so rapidly over recent years, primarily for inertial navigation use, has raised the question of whether the accuracy of these instruments can be made use of in other applications. Can systems which have been employing the older established types of gyroscope benefit from the greater stability of the new type? If a direct change of instrument with no modification of the method of use is considered, the answer will in many cases be no. For example, an improvement in the accuracy of the north-seeking marine gyro compass may not be found rewarding with existing marine navigation techniques, as other factors such as the accuracy with which a ship can be steered would become limiting, defeating the advantage of improved compass accuracy. The introduction of the doppler system has created a different situation in the field of aircraft navigation. Doppler navigation equipment enables an aircraft's drift angle to be measured accurately. That is, the aircraft's track can be defined with an accuracy dependent on the accuracy with which its heading can be measured. In this new situation the overall navigation accuracy is limited by the accuracy of aircraft compasses. These have in general been magnetic compasses, given improved dynamic performance in later years by the incorporation of a gyroscope or use of an associated directional gyro but still dependent on the magnetic element for long-term accuracy. Such a direction reference, though simple and reliable, is at no time precise by modern standards, and as the region of the magnetic pole is approached it becomes practically of very little value. For this reason in recent years the technique of using a free gyro alone as a long-term memory, to store direction information, has been developed, particularly by the airlines operating transpolar services. It is a system such as this that can reap most benefit from use of the new gyroscopes.