A method and system for dynamic metal distortion compensation using an Electromagnetic Tracking System (EMTS) (10) using an electromagnetic field from an electromagnetic field generator (12). A plurality of fiducial markers (14) are provided, each having at least one electromagnetic sensor (26), the electromagnetic sensors oriented in a plurality of sensor orientations, and at least some of the sensors being located proximal to a volume of interest. The fiducial markers (14) are imaged to provide their position in image space. Position readings of the electromagnetic sensors (26) are monitored using the EMTS.