To reduce the influence of nonlinear friction on the dynamic and static performance of gimbal axis for inertial stabilized platform, a novel method based on steady-state error response to identify LuGre friction parameters is proposed in this paper, and a kinetic friction torque testing system using the proposed method is developed. On account of the introduction of structure and electromechanical model for inertial stabilized platform, the relation among the input signals, interfering signals and steady-state error are analyzed. And then the torque ripple compensation function is identified and introduced into the control loop to eliminate the effects of torque ripple on parameter identification of friction model. Based on the friction torque testing system designed, the parameters of LuGre friction model for gimbal axis are got by the method of Two-step identification and dynamic parameter optimization. According to the identified friction model, the tracking process of the framework is compensated. The tracking performance is verified through both simulation and experimental results.