To achieve accurate and completely autonomous navigation for spacecraft, inertial/celestial integrated navigation gets increasing attention. In this study, a missile-borne inertial/stellar refraction integrated navigation scheme is proposed. Position Dilution of Precision (PDOP) for stellar refraction is introduced and the corresponding equation is derived. Based on the condition when PDOP reaches the minimum value, an optimized observation scheme is proposed. To verify the feasibility of the proposed scheme, numerical simulation is conducted. The results of the Extended Kalman Filter (EKF) and Unscented Kalman Filter (UKF) are compared and impact factors of navigation accuracy are studied in the simulation. The simulation results indicated that the proposed observation scheme has an accurate positioning performance, and the results of EKF and UKF are similar.