This paper describes the development of the high accuracy and low cost position measurement system using Laser Range Finder (LRF) and its application to the situation detection and the navigation system for pile driving machine in construction. First, to detect the machine position and rotation angle in construction site, the center of four cylindrical objects that were installed around machine was measured by LRF and the situation of machine was geometrically calculated from the relationships of distance between the objects. The centers of object were estimated by the maximum likelihood estimation method. Next, the monitor system enabled to indicate the situation of driving machine and navigation system introduced the machine to the pile driving position was developed. As a result, the situation detection and the navigation of pile driving machine was able to perform practically, and the possibility to contribute on the quality control and the work efficiency in the paling work were obtained. In this paper, the algorithm of position measurement method for navigation system and its calculation process with cylindrical objects and LRF, and the application results of its navigation system were verified in construction site.