An inertial measurement underwater tracking system which determines range sition onboard an underwater vehicle using inertial navigation techniques. The system uses acoustic telemetry to relay the range position from the vehicle to an operations site. The position data is also recorded onboard the vehicle for post-run analysis. An onboard computer receives the inertial measurements from an inertial measurement unit and computes vehicle position with respect to an initialized reference. An acoustic transmitter receives the measurements, formats the data and transmits it by acoustic telemetry. An underwater hydrophone receives the acoustic telemetry and inputs the data to an acoustic processor to reconstruct the original position data. A range computer processes in real-time the data, and displays and records the time history of vehicle location on the range. After recovery the onboard recorded data is played back into the range computer to provide a maximum accuracy, continuous vehicle-run history.