An error model for a solid-state gyroscope developed in previous work is included in a Kalman filter for improving the orientation estimate of a mobile robot. Orientation measurement with the error model is compared to the performance when no error model is incorporated in the system. The results demonstrate that without error compensation, the error in localization is between 5-15°/min but can be improved by a factor of 5 to 7 if an adequate error model is supplied. Results from tests of this gyroscope on a large outdoor mobile robot system are described and compared to the results obtained from the robot's own radar-based guidance system. Like all inertial systems, the platform requires additional information from some absolute position sensing mechanism to overcome long-term drift. However, the results show that with careful and detailed modelling of error sources, low cost inertial devices can provide valuable orientation and position information particularly for outdoor mobile robot applications.