Active and passive polymer materials have been successfully used in the development of highly accurate, compact and low cost guided-wave components: an optical transceiver and a phase modulator, for inertial measurement units (IMUs) based on the interferometric fibre optic gyroscope (IFOG) technology for precision guidance in navigation systems. High performance and low noise transceivers with high optical power and good spectral quality were fabricated using a silicon-bench architecture. Low loss phase modulators with low halfwave drive voltage (Vπ) have been fabricated with a backscatter compensated design using polarizing waveguides consisting of CLD- and FTC-type high performance electro-optic (E-O) chromophores. Gyro bias stability of less than 0.02° h−1 has been demonstrated with these guided-wave components.