In complex geology, the presence of highly dipping structures can complicate impedance inversion. We have developed a structurally constrained inversion in which a computationally well-behaved objective function is minimized subject to structural constraints. This approach allows the objective function to incorporate structural orientation in the form of dips into our inversion algorithm. Our method involves a multitrace impedance inversion and a rotation of an orthogonal system of derivative operators. Local dips used to constrain the derivative operators were estimated from migrated seismic data. In addition to imposing structural constraints on the inversion model, this algorithm allows for the inclusion of a priori knowledge from boreholes. We investigated this algorithm on a complex synthetic 2D model as well as a seismic field data set. We compared the result obtained with this approach with the results from single trace-based inversion and laterally constrained inversion. The inversion carried out using dip information produces a model that has higher resolution that is more geologically realistic compared with other methods.