Significance: A fleeting flash aligned vertically with an object remaining stationary in the head-centered space would be perceived as lagging behind the object during the observer s horizontal head rotation. This perceptual mislocalization is an illusion named head-rotation-induced flash-lag effect (hFLE). While many studies have investigated the neural mechanism of the classical visual FLE, the hFLE has been hardly investigated. Aim: We measured the cortical activity corresponding to the hFLE on participants experiencing passive head rotations using functional near-infrared spectroscopy. Approach: Participants were asked to judge the relative position of a flash to a fixed reference while being horizontally rotated or staying static in a swivel chair. Meanwhile, functional near-infrared spectroscopy signals were recorded in temporal-parietal areas. The flash duration was manipulated to provide control conditions. Results: Brain activity specific to the hFLE was found around the right middle/ inferior temporal gyri, and bilateral supramarginal gyri and superior temporal gyri areas. The activation was positively correlated with the rotation velocity of the participant around the supramarginal gyrus and negatively related to the hFLE intensity around the middle temporal gyrus. Conclusions: These results suggest that the mechanism underlying the hFLE involves multiple aspects of visual-vestibular interactions including the processing of multisensory conflicts mediated by the temporoparietal junction and the modulation of vestibular signals on object position perception in the human middle temporal complex.