In Dynamically Tuned Gyroscope (DTG) system, traditional identification methods, including least square identification method and traditional frequency domain identification method, could not achieve acceptable identification fitness degree. To deal with this problem, outlier-eliminated frequency identification method was proposed. In consideration of the characteristics of DTG model structure and intrinsic colored noise, outlier-eliminated method was applied to DTG frequency domain identification. The experimental results indicate that outlier-eliminated frequency identification method, with a fitness degree above 90%, compared with both least square identification method and traditional frequency domain identification method, has a better performance. In addition, outlier-eliminated frequency identification method possesses of good repeatability and stability. Outlier-eliminated frequency identification method could improve the identification fitness degree of DTG system.