The dimensional, geometrical, thermal and tool deflection errors which have a big portion of the overall error of machined parts need more attention in precision of components produced by using CNC machine tools. As a result, it is essential to simulate and compensate the errors in the machined components in order to increase accuracy of machined parts. In order to simulate and analyse the real manufactured components in virtual environments, virtual machining systems are proposed. In this paper, application of virtual machining system is investigated in order to simulate and compensate dimensional, geometrical, thermal and tool deflection errors in 5-axis milling operations of free form surfaces. The volumetric error vectors regarding the dimensional, geometrical, thermal and tool deflection errors at each cutting tool location throughout the machining pathways are calculated and compensated utilising the study's created virtual machining technology. In order to validate the study, a sample workpiece free from surfaces is milled by using the 5-axis CNC machine tool. The machine part is then measured by suing the CMM machine in order to obtain the dimensional, geometrical, thermal and tool deflection errors during milling operations of free form surfaces. Thermal sensors are also installed to the different locations of CNC machine tool in order to measure the thermal error of CNC machine tool during machining operations. Finally, in order to improve accuracy in 5-axis milling operations of free form surfaces, new cutting tool paths regarding the compensated volumetric errors of dimensional, geometrical, thermal, and tool deflection errors are generated. As a result, by utilising the proposed virtual machining system in the research work, precision as well as reliability during 5-axis milling operations of free form surfaces can be enhanced.