We have developed a computer assisted neurosurgical navigation system, which displays the point of ongoing surgical manipulation on the CT or MR images. The system utilizes magnetic field modulation technology for the detection of the 3 dimensional position and orientation angles of the probe, a resin pointer or suction tube with a small magnetic field sensor. Four fiducial markers on the scalp were used to translate the spatial data of the probe onto the CT/MRI images. This frameless and armless navigator with a spatial accuracy of 4mm, introduces CT/MRI-stereotaxy to conventional open neurosurgery without limiting the operative field or interfering with surgical procedures.