In this paper, a novel method of sensor based pedestrian dead reckoning is presented using sensors mounted on a shoe. Sensor based systems are a practical alternative to global navigation satellite systems when positioning accuracy is degraded such as in thick forest, urban areas with tall buildings and indoors. Using miniature, inexpensive sensors it is possible to create self-contained systems using sensor-only navigation techniques optimised for pedestrian motion. The systems developed extend existing foot based stride measurement technology by adding the capability to sense direction, making it possible to determine the path and displacement of the user. The proposed dead-reckoning navigation system applies an array of accelerometers and magneto-resistive sensors worn on the subject's shoe. Measurement of the foot's acceleration allows the precise identification of separate stride segments, thus providing improved stride length estimation. The system relies on identifying the stance phase to resolve the sensor attitude and determine the step heading. Field trials were carried out in forested conditions. Performance metrics include position, stride length estimation and heading with respect to a high accuracy reference trajectory.