Gradual fault detection is always an important issue in integrated navigation systems, and the gradual fault is the most difficult fault to detect. To detect gradual faults in a timely and precise manner in integrated navigation systems, the statistical concepts of the normalised residual mean and the sum of absolute residuals are introduced according to the characteristics of gradual system failure in this paper. The applicability of the improved residual χ2 detection method is discussed. Then, the gradual fault detection program based on the improved residual χ2 detection method is designed with the criterion of normalised residual mean and the sum of absolute residual. The simulation results and vehicle tests show that: 1) The residual of the failed sub-system can be calculated accurately with the improved residual χ2 detection method, which has strong applicability in gradual fault detection; 2) The gradual fault can be detected in a short time by using the normalised residual mean and the sum of absolute residual.