Thermal error caused by the thermal deformation is one of the most significant factors influencing the accuracy of the machine tool. Among all the heat sources which lead to the thermal distortions, the spindle is the main one. This paper presents an overview of the research about the compensation of the spindle thermal error. Thermal error compensation is considered as a more convenient, effective and cost-efficient way to reduce the thermal error compared with other thermal error control and reduction methods. Based on the analytical calculation, numerical analysis and experimental tests of the spindle thermal error, the thermal error models are established and then applied for implementing the thermal error compensation. Different kinds of methods adopted in testing, modeling and compensating are listed and discussed. In addition, because the thermal key points are vital to the temperature testing, thermal error modeling, and even influence the effectiveness of compensation, various approaches of selecting thermal key points are introduced as well. This paper aims to give a basic introduction of the whole process of the spindle thermal error compensation and presents a summary of methods applied on different topics of it. •Thermal error compensation is an effective and economical way to reduce the error.•Analyzing, testing, modeling and compensating are main aspects of the research.•Various devices and systems for temperature and thermal error testing are introduced.•Different kinds of methods used for thermal error modeling are studied.•Two commonly used mechanisms of thermal error compensation are explained.