Northrop Grumman Corporation has been awarded a phase three navigation system related contract from the U.S. Air Force Research Laboratory to continue improving geo-registration accuracy for positioning and pointing applications, even in GPS-denied conditions. In the first two phases of the Maintain Accurate Geo-registration via Image-nav Compensation (MAGIC) program, Northrop Grumman integrated geo--registration algorithms in a vision-aided inertial navigation system. Having successfully demonstrated a prototype system in phase one and prepared for flight tests in phase two, the company will continue to develop capabilities for incorporating 3-D maps, improving performance and quantifying uncertainties associated with image-based navigation in phase three, as well as conduct additional test flights to prove real-time performance in realistic environments.