Abstract: An automatic steering system for vessels, operational in a manual mode to select a desired heading, and in an automatic mode to maintain the selected heading. In the manual mode, a magnetic compass incorporated in a servo loop is maintained at a null position to continually monitor the vessel heading. When the system is switched to the automatic mode, the compass servo loop is deactivated and a control loop activated. The control loop keeps the compass output at null by maintaining the vessel on the selected heading. Automatic course corrections are accomplished by turning the helm an amount proportional to a deviation signal, and immediately returning the helm to its original position less a small preset angle. A wireless remote control unit affords the capability of remotely steering the vessel, selecting a new course, and switching between automatic and manual modes.