In a method for automatically compensating a voltage regulator an error amplifier (20) and compensation network are initially disconnected from a feedback loop, a DC bias voltage (34) is applied to the feedback loop to cause the regulator's output voltage to be at 90% of its nominal value and an AC perturbation signal (42) is then added to the DC bias voltage to cause the output voltage to have a ripple at a frequency of the AC signal. The gain of the feedback loop and the phase difference between the AC signal and the ripple is then measured. The measured values are then used to automatically adjust operating characteristics of the error amplifier and the compensation network such that, when these components are connected back in the feedback loop during normal operation, the feedback loop has the desired gain and phase margin at the frequency of the AC signal, such as the loop's unity gain frequency.