A novel neural network based on iterated unscented Kalman filter(IUKF) algorithm is established to model and compensate for the fiber optic gyro(FOG) bias drift caused by temperature. In the network, FOG temperature and its gradient are set as input and the FOG bias drift is set as the expected output. A2-5-1 network trained with IUKF algorithm is established. The IUKF algorithm is developed on the basis of the unscented Kalman filter(UKF). The weight and bias vectors of the hidden layer are set as the state of the UKF and its process and measurement equations are deduced according to the network architecture. To solve the unavoidable estimation deviation of the mean and covariance of the states in the UKF algorithm, iterative computation is introduced into the UKF after the measurement update. While the measurement noise R is extended into the state vectors before iteration in order to meet the statistic orthogonality of estimate and measurement noise. The IUKF algorithm can provide the optimized estimation for the neural network because of its state expansion and iteration. Temperature rise(-20-20 C) and drop(70-20 C)tests for FOG are carried out in an attemperator. The temperature drift model is built with neural network, and it is trained respectively with BP, UKF and IUKF algorithms. The results prove that the proposed model has higher precision compared with the backpropagation(BP) and UKF network models. A novel neural network based on iterated unscented Kalman filter (IUKF) algorithm is established to model and compensate for the fiber optic gyro (FOG) bias drift caused by temperature. In the network, FOG temperature and its gradient are set as input and the FOG A2-5-1 network trained with IUKF algorithm is established. The IUKF algorithm is developed on the basis of the unscented Kalman filter (UKF). The weight and bias vectors of the hidden layer are set as the state of the UKF and its process and measurement equations are deduced according to the network architecture. To solve the unavoidable estimation deviation of the mean and covariance of the states in the UKF algorithm, iterative computation is introduced into the UKF after the measurement update While the measurement noise R is extended into the state vectors before iteration in order to meet the statistic orthogonality of estimate and measurement noise. The IUKF algorithm can provide t he optimized estimation for the neural network because of its state expansion and iteration. Temperature rise (-20-20 C) and drop (70-20 C) tests for FOG are carried out in an attemperator. The temperature drift model is built with neural The results prove that the proposed model has higher precision compared with the backpropagation (BP) and UKF network models.