A mixed mode compensation circuit and method for a power converter generate a digital signal according to a reference value and a feedback signal which is related to the output voltage of the power converter, convert the digital signal into a first analog signal, offset the first analog signal with a variable offset value to generate a second analog signal, and filter out high-frequency components of the second analog signal to generate a third analog signal for stable output voltage of the power converter. The mixed mode compensation does not require large capacitors, and thus the circuit can be integrated into an integrated circuit.