When the vertical drilling system is drilled in complex formations, a large deviation measurement error will be generated under rotation, which will ultimately affect the deviation correction effect. Therefore, it is urgent to solve the problem of high-precision measurement of well deviation under rotation conditions to ensure that the vertical drilling tool can accurately measure well deviation under rotation conditions. In this paper, a new method is proposed, which combines the Kalman filter of the three-axis accelerometer and the polynomial rotation centrifugal force correction. At the same time, a dynamic well deviation measurement system for vertical drilling tools based on multi-sensor combination of accelerometer, magnetometer and gyroscope is designed to meet the requirements of automatic vertical drilling system for dynamic deviation measurement while drilling. The system can provide accurate well deviation, which is helpful to achieve better deviation prevention and correction effect. The upgraded vertical drilling tool has been tested in domestic oilfields. The application results show that the upgraded vertical drilling tool has high deviation monitoring accuracy, good deviation correction control, and good deviation prevention and straightening effect. Through the development of the independent intellectual property rights of the adaptive dynamic well deviation calculation algorithm and dynamic well deviation measurement circuit, effectively eliminate the influence of the rotary motion of the drilling tool on the vertical drilling tool deviation measurement, ensure the accuracy of dynamic well deviation measurement, and provide accurate and reliable well deviation data for the vertical drilling tool deviation prevention and drilling operation.