This paper presents performance improvement of the INS velocity-adided GPS carier tracking loop. To this end, INS velocity-aided GPS carrier tracking loop was modeled as a feedfoward and a feedback loop system. In the phase tracking loop, it was shown that the tracking error caused by the dynamic motion of the vehicle can be compensated with the aiding of the INS information irrespective of the loop order and bandwidth. However, the signal trcking error increases as the INS error increases. It was also shown that in order to remove the tracking error caused by INS bias error, more than or equal to 2nd order PLL should be used. Experiments were carried out and the experimental results were compared with the analysis results.