The invention relates to a improved data compression communication method applicable to a wide area measurement system and belongs to the technical field of power system communication. The method combines overtime conditions, filtering conditions and compression conditions, whether data are required to be sent is sequentially judged through the overtime conditions, the filtering conditions and the compression conditions to achieve real-time data compression communication, wherein the overtime conditions are used for comparing maximum transmission gaps of the wide area measurement system, the filtering conditions are used for measuring error magnitude which are allowed by measuration values of electrical power system status data, and the compression conditions are used for measuring error magnitude which are allowed by change rates of the measuration values of the electrical power system status data. According to the method, under the conditions of steady states and transient states of an electrical power system, data compression can be effectively performed, and real-time performance of communication is guaranteed; simultaneously, empty data packets are still sent when sending conditions are not met so that working states of communication can be conveniently distinguished, and reliable communication is guaranteed; and by means of the method, a large quantity of wide area measurement system (WAMS) data communication traffic can be reduced, and communication, namely, data processing load, is substantially reduced.