Continuous indoor and outdoor positioning and navigation is the goal to achieve in the field of mobile mapping technology. However, accuracy of positioning and navigation will be largely degraded in indoor or occluded areas, due to receiving weak or less GNSS signals. Targeting the need of high accuracy indoor and outdoor positioning and navigation for mobile mapping applications, the objective of this study is to develop a novel method of indoor positioning and navigation with the use of spherical panoramic image (SPI). Two steps are planned in the technology roadmap. First, establishing a control SPI database that contains a good number of well-distributed control SPIs pre-acquired in the target space. A control SPI means an SPI with known exterior orientation parameters, which can be solved with a network bundle adjustment of SPIs. Having a control SPI database, the target space will be ready to provide the service of positioning and navigation. Secondly, the position and orientation of a newly taken SPI can be solved by using overlapped SPIs searched from the control SPI database. The method of matching SPIs and finding conjugate image features will be developed and tested. Two experiments will be planned and conducted in this paper to test the feasibility and validate the test results of the proposed methods. Analysis of appropriate number and distribution of needed control SPIs will also be included in the experiments with respect to different test cases.