In conventional GPS/DR integration schemes, the GPS position (or pseudo-range) information is used in calibrating DR sensors. In those schemes, however, an inaccurate calibration may degrade the position accuracy when the GPS measurement is not available. This paper presents a new integration scheme where the GPS velocity information is used in calibrating DR sensors. Also proposed is a new error model of DR sensors for calibrating the bias error and the tilt error in dynamic environments. The proposed model makes it possible that the errors of both the DR sensor parameters and the velocity are calibrated using the GPS carrier-based velocity(or the pseudo-range rate) measurement while the DR position error is calibrated using the GPS position measurement. Since the DR sensors are calibrated accurately, the positioning accuracy is drastically improved when the GPS measurements are unavailable.