Abstract: The design of a low-cost and middle accuracy panoramic sight is introduced. It features with one mechanical gyroscope for both stabilization and inertial navigation. The key technology of this method is to quickly converge the sensitive axes of the mechanical gyroscope to the intersection line of the meridional plane and the horizontal plane based on the principle of gyroscope compass, to isolate payload from platform disturbance with the gyroscope and two degrees of freedom gimbals, to obtain the attitude angle of the platform by electro-optical sensor on the gimbals, and to make the sight slaved to the sensitive axes of the gyroscope to realize the indirect stabilization. During the calculation, the moving command for the sight was input in the form of slave correction. The projection of platform disturbance along the stabilized coordinates was acquired by resolving the attitude matrix. The navigation function can be realized by combining the information of the platform attitude and an odometer.