Attitude determination involves the integration of methodologies and systems for estimating the time varying attitude of moving objects. Strapdown Inertial Attitude Measurement System (SIAMS) is among the most widely used navigation systems. The development of cost effective Micro Electro Mechanic System (MEMS) based inertial sensors has made attitude measurement system more affordable. However, MEMS sensors suffer from various errors that have to be calibrated and compensated to get acceptable attitude results. Given the auto-compensation of inertial sensor bias in rotation error modulation, the objective of this paper is to develop a MEMS-based rotary SIAMS, in which the significant sensor bias is automatically compensated by rotating the IMU, to offer comparable performance with respect to a tactical-grade Inertial Measurement Unit (IMU). With the analysis of the relationship between the MEMS error and misalignment, a MEMS calibration model is derived, and a combined calibration method of multi position rotation is applied to estimate the deterministic sensor errors such as bias, scale factor, and misalignment. Simulation and experiment results indicate that the proposed method can further modulate and compensate the MEMS errors, thereby improving the MEMS attitude accuracy.