A signal compensation method and device, where the method includes receiving a signal sequence suffering from intersymbol interference (ISI), setting a first filtering coefficient to perform filter compensation on the received signal sequence to obtain a first compensation signal sequence, setting a balance filtering coefficient to perform filter compensation on the first compensation signal sequence to obtain a balance compensation result, where the balance filtering coefficient is obtained by adjusting, according to a first compensation error, a balance filtering coefficient set last time, performing sequence estimation on the balance compensation result and outputting the balance compensation result, where the first compensation error adjusts the balance filtering coefficient set to perform filter compensation on the first compensation signal sequence in an iterative manner, thereby effectively compensating for the signal sequence suffering from the ISI, and improving performance of an optical fiber communications system.