Abstract: A phase labeling using sensitivity encoding system and method for correcting geometric distortion caused by magnetic field inhomogeneity in echo planar imaging (EPI) uses local phase shifts derived directly from the EPI measurement itself, without the need for extra field map scans or coil sensitivity maps. The system and method employs parallel imaging and k-space trajectory modification to produce multiple images from a single acquisition. The EPI measurement is also used to derive sensitivity maps for parallel imaging reconstruction. The derived phase shifts are retrospectively applied to the EPI measurement for correction of geometric distortion in the measurement itself.