This paper addresses the issue of state estimation in the integration of a Strapdown Inertial Navigation System (SINS) and Global Positioning System (GPS), which is used for airborne earth observation positioning and orientation. For a nonlinear system, especially with large initial attitude errors, the performance of linear estimation approaches will degrade. In this paper a nonlinear error model based on angle errors is built, and a nonlinear estimation algorithm called the Central Difference Rauch-Tung-Striebel (R-T-S) Smoother (CDRTSS) is utilized in SINS/GPS integration post-processing. In this algorithm, the measurements are first processed by the forward Central Difference Kalman filter (CDKF) and then a separate backward smoothing pass is used to obtain the improved solution. The performance of this algorithm is compared with a similar smoother based on an extended Kalman filter known as ERTSS through Monte Carlo simulations and flight tests with a loaded SINS/GPS integrated system. Furthermore, a digital camera was used to verify the precision of practical applications in a check field with numerous reference points. All these validity checks demonstrate that CDRTSS is a better method and the work of this paper will offer a new approach for SINS/GPS integration for Synthetic Aperture Radar (SAR) and other airborne earth observation tasks.