This paper presents a new ultra-short baseline (USBL) tightly-coupled integration technique to enhance error estimation in low-cost strap-down inertial navigation systems (INSs) with application to underwater vehicles. In the proposed strategy the acoustic array spatial information is directly exploited resorting to the extended Kalman filter implemented in a direct feedback structure. The determination and stochastic characterization of the round trip travel time are obtained resorting to pulse detection matched filters of acoustic signals modulated using spread-spectrum code division multiple access (CDMA). The performance of the overall navigation system is assessed in simulation and compared with a conventional loosely-coupled solution that consists of solving separately the triangulation and sensor fusion problems. From the simulation results it can be concluded that the proposed technique enhances the position, orientation, and sensors biases estimates accuracy