The objective of this study is to develop a novel method of indoor positioning and navigation with the use of spherical panoramic image (SPI).Two steps are planned in the technology roadmap. Firstly, establishing a control SPI database that contains a good number of well-distributed control SPIs pre-acquired in the target space. A control SPI means an SPI with known exterior orientation parameters (EOPs). Having a control SPI database, the target space will be ready to provide the service of positioning and navigation. Secondly, the position and orientation parameters (POPs) of a newly taken SPI can be solved by using overlapped SPIs searched from the control SPI database. For validation, two kinds of corresponding points were applied in the experiment. The result of calculation were shown in this research including the analysis and discussion.