In view of the problems such as the lower automation level and the insufficient precision of the traditional fiber optic gyroscope (FOG) static north-finder, this paper focuses on the in-depth analysis of the FOG dynamic north-finder principle and algorithm. The simulation model of the FOG dynamic north found algorithm with the least square method by points is established using Simulink toolbox, and then the platform rotation speed and sampling frequency, which affect FOG dynamic north found precision obviously, are simulated and calculated, and the optimization analysis is carried out as a key consideration. The simulation results show that, when the platform rotation speed is between 4.5 °/s and 8.5 °/s and the sampling frequency is at about 50 Hz in the case of using the parameters of this paper, the FOG dynamic north finding system can reach the higher precision. And the conclusions can provide the reference and validation for the engineering and practical of FOG dynamic north-finder.