This paper, jointly authored by Hillcrest Labs and ARM, sets out to explain the background of sensor fusion processing and to present to the reader the advances in device capability that will be enabled as a result of Cortex-M7 processor. As well as explaining the benefits of the Cortex-M7 architecture in sensor fusion, this paper also goes on to present two application examples, the first showing how sensor fusion on a Cortex-M7 processor can be used as an offload engine to save energy in a high-end head mounted display application. In contrast, the second application example takes the reader through the benefits of using a Cortex-M7 core in a standalone configuration to run both the sensor fusion software as well as the main application software in a smartwatch application.