Rotation modulation (RM) has been widely used in navigation systems to significantly improve the navigation accuracy of inertial navigation systems (INSs). However, the traditional single-axis rotation modulation cannot achieve the modulation of all the constant errors in the three directions; thus, it is not suitable for application in highly dynamic environments due to requirements for high precision in missiles. Aiming at the problems of error accumulation and divergence in the direction of rotation axis existing in the traditional single-axis rotation modulation, a novel rotation scheme is proposed. Firstly, the error propagation principle of the new rotation modulation scheme is analyzed. Secondly, the condition of realizing the error modulation with constant error is discussed. Finally, the original rotation modulation navigation algorithm is optimized for the new rotation modulation scheme. The experiment and simulation results show that the new rotation scheme can effectively modulate the error divergence of roll angle and improve the accuracy of roll angle by two orders of magnitude.