Abstract:The Supervision Law(Article 76) and its Implementation Regulations(Articles 320 and 321) have established the basic framework for the supervision compensation system. However, there are still significant deficiencies in the normative supply and connection with the State Compensation Law, resulting in the supervision compensation procedure not being activated yet. With the increasing prominence of human rights protection in the new Supervision Law, the importance of the supervision compensation system is becoming more and more evident. The supervision compensation procedure should be effectively coordinated with the supervision appeal procedure to promptly restore the rights of the supervised objects and related personnel. When clarifying the scope of supervision compensation, it is necessary to focus on the coordination and connection with criminal compensation, administrative compensation, and the review and reconsideration procedures. In the design of the supervision compensation procedure, efficiency and convenience should be the guiding principles, with the introduction of judicial relief and the priority initiation of the supervision appeal procedure. The supervision compensation procedure consists of three stages: the preliminary handling by the compensation liability agency, the reconsideration, and the judicial relief by the People’s Court Compensation Committee.