A new rotary traveling wave oscillator (RTWO) with automatic phase error compensation feedback is proposed in this paper. By introducing a new negative transconductor (ÀG m cell) circuit, the currents in four ÀG m cells adjust differently to cancel the phase errors. To better understand the new RTWO phase error compensation technique and design procedure of the whole system, the system analysis for describing the phase error compensation technique is provided. The design considerations of each block of the new RTWO at the circuit level are clarified. Besides, the stability of the whole system is analyzed. Appropriate simulations have been done in 0.18 μm CMOS technology with a 1.8 V supply voltage to evaluate the new RTWO performance and its accuracy. The evaluations verify the capability of the new RTWO to cancel the phase error.