A dual-axis rotational Inertial Navigation System (INS) has received wide attention in recent years because of high performance and low cost. However, some errors of inertial sensors such as stochastic errors are not averaged out automatically during navigation. Therefore a Twice Position-fix Reset (TPR) method is provided to enhance accuracy of a dual-axis rotational INS by compensating stochastic errors. According to characteristics of an azimuth error introduced by stochastic errors of an inertial sensor in the dual-axis rotational INS, both an azimuth error and a radial-position error are much better corrected by the TPR method based on an optimised error propagation equation. As a result, accuracy of the dual-axis rotational INS is prominently enhanced by the TPR method, as is verified by simulations and field tests.