Abstract Background Observational studies have shown a positive association between time outdoors and physical activity in children. Time outdoors may be a feasible intervention target to increase the physical activity of youth, but methods are required to accurately measure time spent outdoors in a range of locations and over a sustained period. The Global Positioning System (GPS) provides precise location data and can be used to identify when an individual is outdoors. The aim of this study was to investigate whether GPS data recorded outdoors were associated with objectively measured physical activity. Methods Participants were 1010 children (11.0 ± 0.4 years) recruited from 23 urban primary schools in South West England, measured between September 2006 and July 2008. Physical activity was measured by accelerometry (Actigraph GT1M) and children wore a GPS receiver (Garmin Foretrex 201) after school on four weekdays to record time outdoors. Accelerometer and GPS data were recorded at 10 second epochs and were combined to describe patterns of physical activity when both a GPS and accelerometer record were present (outdoors) and when there was accelerometer data only (indoors). ANOVA was used to investigate gender and seasonal differences in the patterns of outdoor and indoor physical activity, and linear regression was used to examine the cross-sectional associations between GPS-measured time outdoors and physical activity. Results GPS-measured time outdoors was a significant independent predictor of children's physical activity after adjustment for potential confounding factors. Physical activity was more than 2.5 fold higher outdoors than indoors (1345.8 ± 907.3 vs 508.9 ± 282.9 counts per minute; F = 783.2, p