In the conventional generalized side-lobe canceller (GSC), the output is an estimated error signal that causes the adaptive filter weights do not converge to the optimal value. This paper presents a new side-lobe canceller with adaptive compensator th it reduces the misadjustment of the adaptive filter coefficients for the structural problem in the GSC. The adaptive compensator separates the output signal from the estimated error. The newly estimated error signal converges to the zero while the output signal tracks the target signal. This paper shows improvement of the performance by comparing the computer simulation of the output signal of GSC with the output signal of the proposed algorithm.