Eddy current testing (ECT) is an accurate, widely used and well-understood inspection technique, particularly in the aircraft and nuclear industries. The coating thickness or lift-off will influence the measurement of defect depth on pipes or plates. It will be an uncertain decision condition whether the defects on a workpiece are cracks or scratches. This problem can lead to the occurrence of pipe leakages, besides causing the degradation of a company’s productivity and most importantly risking the safety of workers. In this paper, a novel eddy current testing error compensation technique based on Mamdani-type fuzzy coupled differential and absolute probes was proposed. The general descriptions of the proposed ECT technique include details of the system design, intelligent fuzzy logic design and Simulink block development design. The detailed description of the proposed probe selection, design and instrumentation of the error compensation of eddy current testing (ECECT) along with the absolute probe and differential probe relevant to the present research work are presented. The ECECT simulation and hardware design are proposed, using the fuzzy logic technique for the development of the new methodology. The depths of the defect coefficients of the probe’s lift-off caused by the coating thickness were measured by using a designed setup. In this result, the ECECT gives an optimum correction for the lift-off, in which the reduction of error is only within 0.1% of its all-out value. Finally, the ECECT is used to measure lift-off in a range of approximately 1 mm to 5 mm, and the performance of the proposed method in non-linear cracks is assessed.