The journey accuracy of overhead travelling crane was improved based on error compensation. To begin with analysis of error sources, the holographic error model had been established. As for each error source, the effect had been analyzed to acquire the main error sources which needed to be considered. The error compensation methods corresponding to relevant main error sources had been discussed by different means. The error compensation algorithm that had been designed according to the research results had been applied to compensating journey error of overhead travelling crane. The simulation experiment validated that the algorithm was effective. Through a large number of on-site tests, the maximal error of actual position and ideal position was +2.5( em), which well satisfied the need of prod uction.