A positioning and proximity warning method for vehicle includes the steps of outputting global positioning system signals to an integrated positioning/ground proximity warning system processor; outputting an inertial navigation solution to an integrated positioning/ground proximity warning processor; measuring air pressure, and computing barometric measurements which is output to the integrated positioning/ground proximity warning processor; measuring time delay between transmission and reception a radio signal from a terrain surface, and computing radio altitude measurement which is output to the integrated positioning/ground proximity warning processor; accessing a terrain database for obtaining current vehicle position and surrounding terrain height data which is output to the integrated positioning/ground proximity warning processor; and receiving the position, velocity and time information or said pseudorange and delta range measurements of said global positioning system, the inertial navigation solution, the radio altitude measurement, the radio altitude measurement, and the current vehicle position and surrounding terrain height data, and computing optimal positioning solution data and optimal ground proximity warning solution data. Furthermore, a positioning and proximity warning method for vehicles further includes the steps of outputting the optimal positioning solution data and position data of near objects to an object tracking and collision avoidance processor to determine a potential collision threat with the near object.