Objectives In laparoscopic liver surgery, intraoperative navigation is strongly recommended. We developed a navigation system based on intraoperative ultrasound (IOUS). The purpose of this study was to evaluate the usefulness and accuracy of this system using an animate model. Materials and methods Augmented reality (AR) visualization superimposing three-dimensional ultrasound (3D-US) images onto captured laparoscopic live images was constructed. We employed magneto-optic hybrid tracking configuration and a rapid method of magnetic distortion correction. Twelve pigs and liver tumor mimics were used, and effects of magnetic distortion correction and accuracy of 3D-US navigation were evaluated. Results Using magnetic distortion correction, tracking error was significantly reduced. Each ultrasound scanning time was within 30 s, and the time to generate 3D-US images was within 3 min. All tumor mimics were successfully punctureguided with navigation. Registration accuracy was significantly improved from 17.2 ± 5.27 to 1.96 ± 0.87 mm. Conclusion We developed an AR navigation system based on IOUS. Experimental results showed that the proposed method was effective, and could be used in clinical settings. 3D-US, as an imaging modality allows real-time imaging regardless of organ shifts or distortion.