This inertial navigation system is the core equipment of ship navigation system and the main means for ship to achieve autonomous and safe navigation, and for ship borne weapon system to carry on precision strike against enemy. Base on the development of inertial navigation technology, this paper briefly describes the principles and needs of inertial navigation system with the laser inertial navigation as the representative, and also comprehensively describes the development and the application situation of foreign ship inertial navigation technology, comparatively analyses the foreign development and application situation an looks forward to the future development direction of ship inertial navigation technology and system.