In order to further improve the efficiency and reliability of current path planning algorithms applied to embedded vehicle navigation systems, a novel path planning algorithm is proposed in this paper based on a concise topology electronic map. In the proposed algorithm, the traditional searching area is optimized by tackling the path planning problem in a capsule-like restricted area. Furthermore, the feasibility and reliability of the algorithm is guaranteed by setting the dynamic parameter. Simulation results verify that the proposed algorithm finds the optimal shortest path in a short time and performs better than conventional algorithms in terms of effectiveness and reliability.