This research paper focuses on the design of altitude measurement unit (Altimeter Unit) for infrared target seeking guided missile based on IGS (Inertial Guidance System). Moreover, the investigation highlights on IGU (Inertial Guidance Unit) that comprises accelerometers, pressure sensors and electromagnetic devices. The data acquisition, data storage, data computing facilities need to be extremely precise for this system. This paper also covered literature survey and source, collection of design for missile motion and the force vector derivations are also mentioned in the selection of control devices and equipments. The software source code in each portion is developed for MPASM assembler and PIC C complier. This research paper also endeavours to build a small model missile body to lest our system on board. The design used data acquired from tests conducted by internationally known missile research laboratories the functional test results are explained and discussed for further extensions