Abstract: A system for navigating and guiding a surgical instrument during a surgical procedure. A transmitter is positioned near a patient's anatomy. A receiver is attached to the surgical instrument. The position of the surgical instrument is tracked using the transmitter and receiver. A processing unit determines the location of the surgical instrument relative to the patient's anatomy and produces images with a pictorial representation of the surgical instrument and the patient's anatomy. The images are displayed on a display. A surgeon can view the images on the display and guide the surgical instrument into position inside the patient. The surgical instrument can be guided inside a patient without continuously producing real time x-ray exposures. Positions of the surgical instrument can be saved and displayed on the display along with the pictorial representation of the surgical instrument in its current position.