This article presents the results of a study of the development of a digital magnetic compass system (DMCS) using a magnetic sensor and a position sensor, and also presents two algorithms applicable to microcontrollers inside digital magnetic compasses (DMC) for processing output noise (Kalman algorithm and interval). The article also describes the actual test results of the DMCS on ships in Vietnam. The test results show that the system meets the criteria of the use on a ship in case a magnetic sensor and a positioning sensor in combination with noise reduction methods that affect the output signal of the DMC are used. The purpose and significance of the research and design of the DMC is to evaluate the method of using two magnetic signals and positioning in the manufacture of the DMC, equipping a cheap compass system for small vessels and vessels navigating along internal routes.