The invention discloses a novel zero intermediate frequency pulse compression radar system and a signal performance compensation method thereof. Radar echo signals are divided into an I channel and a Q channel after passing through a low noise amplifier and respectively and sequentially pass through a predefined filter and an analog-to-digital converter to be connected to a digital processor, and the digital processor performs pulse compression and signal performance compensation on the signals. The predefined filter is used for filtering frequency bands of the direct current offset and flicker noise of a zero intermediate frequency receiver, and a high-pass filter is used for determining the cut-off frequency by measuring the bandwidth of the frequency band of the flicker noise. According to the novel zero intermediate frequency pulse compression radar system and the signal performance compensation method thereof, a circuit can be made through monolithic integration, the advantage of high range resolution of traditional pulse compression radar is obtained, the deficiency of the performance of the zero intermediate frequency receiver is overcome, and the application to pulse compression radar systems in high demand becomes possible, so that the radar system of high performance, low energy consumption, low cost and small size is obtained; the wide application to small radar systems such as close range automatic safety detection systems and high sensitivity visual signal detectors is also available.