A compensation method for a light emitting diode (LED) circuit including a first transistor, a second transistor, a capacitor, and a LED is illustrated. A first end as a control end of the first transistor is connected to one end of the second transistor and the capacitor, and a second end of the first transistor is connected to the LED. A width to length (W/L) ratio of the second transistor is less than one. An initial control voltage is applied to a control end of the second transistor, and the current output voltage of the LED is correspondingly measured. If a difference between the current output voltage and an initial output voltage exceeds a predetermined value, a compensation voltage, which is a summation of the initial control voltage and the difference, is applied to the control end of the second transistor.