Internet telephony service is very cheap and very easy to introduce the value-added service than the POTS, but is difficult to the QoS of telephone service. The existing Internet typically offers "best effort"services only, which do not make any commitment about delay, packet loss and jitter. This paper compensates the low quality of the speech for packet loss or delay using SOLA algorithm in Internet phone. SOLA algorithm is a popular technique for Time Scale Modification of speech and audio signal. In the proposed algorithm, the receiver expands the received packet under reasonable threshold, and hence compensates the QoS of speech. From the simulation, this algorithm can conceals packet loss considerably, and is also improved the quality of the speech.