The present invention relates to an optical navigation system for determining a pose, which includes the position and orientation of an object in an environment. The optical navigation system uses a number of beacons affixed at known locations in the environment to provide electromagnetic radiation in a sequenced pattern. An on-board optic images the radiation from the beacons onto an on-board centroid sensing device to obtain an imaged distribution of the radiation on the on-board centroid sensing device. The centroid sensing device determines the centroid of the imaged distribution and provides centroid information to a navigation unit for determining the pose of the object from the centroid. The navigation system is particularly well-suited for navigating hand-held objects.