It is a necessary mean to realize the accurate motion control of the manipulator which uses end-effector pose correction method and compensation method. In this article, first, we established the kinematic model and error model of the modular manipulator (WUST-ARM), and then we discussed the measurement methods and precision of the inertial measurement unit sensor. The inertial measurement unit sensor is mounted on the end-effector of modular manipulator, to get the real-time pose of the end-effector. At last, a new inertial measurement unit-based iterative pose compensation algorithm is proposed. By applying this algorithm in the pose compensation experiment of modular manipulator which is composed of low-cost rotation joints, the results show that the inertial measurement unit can obtain a higher precision when in static state; it will accurately feedback to the control system with an accurate error compensation angle after a brief delay when the end-effector moves to the target point, and after compensation, the precision errors of roll angle, pitch angle, and yaw angle are reached at 0.05°, 0.01°, and 0.27°respectively. It proves that this low-cost method provides a new solution to improve the end-effector pose of low-cost modular manipulator.