A navigation system with a function of one-touch map matching correction, and a method thereof. The navigation system includes a GPS module for receiving each position signal, and measuring self position and driving direction; a map database for storing map data; a storage unit for storing a candidate designation index, road information, a guidance stop flag, a flag activating a map-matching correction button, and voice data for road sequence guidance; a display unit for displaying the map data, activating or deactivating the map-matching correction button, and generating a coordinate value of a position; and a controller for indexing the parallel roads, generating a candidate road array, activating the map-matching correction button, and sequentially selecting candidate roads while performing the map matching correction.