In order to achieve high performance vector control, it is essential to measure accurate ac current. The errors generated from current path are inevitable, and they could be divided into two categories: offset error and scaling error. The current data including these errors cause periodic speed ripples which are one and two times of stator electrical frequency respectively. Since these undesirable ripples bring about bad influences to motor driving system, a compensation algorithm must be needed in the control algorithm of the motor drive. In this paper, a new compensation algorithm is proposed. The signal of the integrator output of the d-axis current regulator is chosen and processed to compensate the current measurement errors. The compensation of the current measurement errors is easily implemented to smooth the signal of the integrator output of the d-axis current regulator by subtracting the DC offset value or rescaling the gain of the hall sensor. Therefore, the proposed algorithm has several features: the robustness of the variation of the mechanical parameters, the application of the steady and transient state, the easy implementation, and less computation time.