A digital induction resistivity logging tool is disclosed for digitally measuring both the in-phase (R) and quadrature (X) phase components in a receiver signal generated in response to induce eddy currents flowing in the earth's sub-surface formations. The digital induction tool includes a digital sinewave generator for generating a highly phase stable, low distortion transmitter signal to a transmitter coil. One phase sensitive detector is used to detect both the R and the X phase component signals in the receiver signal. Automatic phase compensation is included to compensate for both static phase shift errors and periodically to compensate for temperature dependent phase shift errors, both static and temperature errors being introduced by circuits of the tool.