A prosthetic hip installation system comprising a reamer, an impactor, a tracking element, and a remote system. The tracking element can be integrated into the reamer or impactor for providing tracking data on the position or orientation. Alternatively, the tracking element can be housed in a separate module that can be coupled to either the reamer or impactor. The tracking element will couple to a predetermined location. Points in 3D space can be registered to provide a frame of reference for the tracking element or when the tracking element is moved from tool to tool. The tracking element sends data from the reamer or impactor wirelessly. The remote system receives the tracking data and can further process the data. A display on the remote system can support placement and orientation of the tool to aid in the installation of the prosthetic component.
