An image-augmented inertial navigation system includes an inertial navigation system configured to estimate a navigation state vector and an imager configured to output pixel signals associated with terrain features passing through a field view of the imager. The system further includes a processing unit configured to determine a distance from the imager to each of the pixel signals for a given image frame and to determine a distance between the imager and a centroid of one or more of the terrain features passing through the field of view of the imager for the given image frame. 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 based on calculated NED coordinates position information of the tracked terrain features.