A navigation system for vehicles, such as rotorcraft, includes a directional gyroscope having a magnetic heading correction mode, a nonmagnetic manual heading correction mode and a nonmagnetic automatic heading correction mode. A magnetic field sensor is operably coupled to the directional gyroscope and is operable to generate magnetic north-based signals. A heading correction input is operably coupled to the directional gyroscope and is operable to generate manual signals upon actuation thereof. A global positioning system sensor is operably coupled to the directional gyroscope and is operable to generate track-based signals. In the magnetic heading correction mode, the directional gyroscope receives the magnetic north-based signals for heading corrections. In the nonmagnetic manual heading correction mode, the directional gyroscope receives the manual signals for heading corrections. In the nonmagnetic automatic heading correction mode, the directional gyroscope periodically receives the track-based signals for heading corrections.