We discuss optimal rotation estimation from two sets of 3-D points in the presence of anisotropic and inhomogeneous noise. We first present a theoretical accuracy bound and then give a method that attains that bound, which can be viewed as describing the reliability of the solution. We also show that an efficient computational scheme can be obtained by using quaternions and applying renormalization. Using real stereo images for 3-D reconstruction, we demonstrate that our method is superior to the least-squares method and confirm the theoretical predictions of our theory by applying the bootstrap procedure.