To prevent short-circuits between the upper and lower switches of power converters from over-current protection, the dead time is mandatory in the switching gating signal for voltage source converters. However, this results in many negative effects on system operations, such as output voltage and current distortions (e.g., increased level of fifth and seventh harmonics), zero-current-clamping phenomenon, and output fundamental-frequency voltage reduction. Many solutions have been presented to cope with this problem. First, the dead-time effect is analyzed by taking into account factors such as the zero-clamping phenomenon, voltage drops on diodes and transistors, and the parameters of inverter loads, as well as the parasitic nature of semiconductor switches. Second, the state-of-the-art dead-time compensation algorithms are presented in this paper. Third, the advantages and disadvantages of existing algorithms are discussed, together with the future trends of dead-time compensation algorithms. This article provides a complete scenario of dead-time compensation with control strategies for voltage source converters for researchers to identify suitable solutions based on demand and application.