Abstract: A phase reference navigation system and method employs a plurality of fixed narrow beamwidth antennas arranged to cover a predetermined angular sector and such that the patterns of adjacent antennas crossover one another at their half-power points. Each antenna radiates an RF carrier which is amplitude modulated by a reference phase signal and by one of two different frequency subcarriers. Adjacent antennas radiate different frequency subcarriers. Each subcarrier is frequency modulated by a variable phase signal which has a phase relative to the reference signal which corresponds to the direction of orientation of the antenna from which that subcarrier radiates. A receiver simultaneously receives the RF energy radiated by two adjacent antennas. Upon demodulation, the two variable phase signals are recovered and combined to produce a resultant signal which has a phase that varies as a function of angle between the two antennas.