An information handling system (IHS) includes temperature-compensated power control by a voltage regulation (VR) module to: (i) receive a monitored current (Imon) value from a current sensor integrated into the VR module; (ii) receive a temperature value from the temperature sensor also integrated into the VR module; (iii) determine a temperature-compensated Imon value based at least in part on the Imon value, the temperature value, and an empirically-derived temperature coefficient defined at the Imon value and the temperature value; and (iv) control the voltage-regulated power at least in part based on the temperature-compensated Imon value. The empirically-derived temperature coefficient adjusts for nonlinear portions of temperature coupling relationship between a portion of an integrated circuit (IC) die that can include the current sensor and the temperature sensor and a temperature experienced by by active portion of VR module.