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The need to improve the efficiency and capacity of the Air Traffic Control and Navigation System has placed greater emphasis on the functional integration of subsystems which have been treated independently in the past. This paper presents results of limited test programs designed to explore the relationship of terminal area navigation and the air traffic control system, and to show the benefits of an optimum combination of both functions. The need for further analysis is indicated with respect to carrying out the third generation system design postulated by the DOT Air Traffic Control Advisory Committee. It is concluded that functional integration of ATC and navigation in the terminal area presents the greatest challenge. In other areas, such as enroute, the availability of new, integrated avionics systems provides an expanded operational capability.