Abstract: This paper combines the model's dynamic analysis method with multi-scale transformation method of statistical characteristics.At first data-block transformation technique is used to change the original state equation into the new state-block equation,and the original measurement equation is expressed in the form of data-block.Then,the multi-layer wavelet transformation technique is used to the original measurement vector to achieve the new measurement vector which goes into the Kalman filter with the state-block equation.At last,this paper builds up the multi-scale distributed fusion estimation algorithm according to the above results of Kalman filter.When the above algorithm is used to GPS/SST/SIN integrated navigation system,the simulated results show that this algorithm can increase the filtering precision.