Summary The ability to form episodic memories and later imagine them is integral to the human experience, influencing our recollection of the past and our ability to envision the future. While research on spatial navigation in rodents suggests the involvement of the medial temporal lobe (MTL), especially the hippocampus, in these cognitive functions, it is uncertain if these insights apply to the human MTL, especially regarding imagination and the reliving of events. Importantly, by involving human participants, imaginations can be explicitly instructed and their mental experiences verbally reported. In this study, we investigated the role of hippocampal theta oscillations in both real-world and imagined navigation, leveraging motion capture and intracranial electroencephalographic recordings from individuals with chronically implanted MTL electrodes who could move freely. Our results revealed intermittent theta dynamics, particularly within the hippocampus, which encoded spatial geometry and partitioned navigational routes into linear segments during real-world navigation. During imagined navigation, theta dynamics exhibited similar, repetitive patterns despite the absence of external environmental cues. Furthermore, a computational model, generalizing from real-world to imagined navigation, successfully reconstructed participants’ imagined positions using neural data. These findings offer unique insights into the neural mechanisms underlying human navigation and imagination, with implications for understanding episodic memory formation and retrieval in real-world settings.