This paper suggests a methodology fur improving the machining accuracy by compensating for the machining errors based on on-machine measurement process. Probing errors and machine tool errors included in the measurement data were calibrated or compensated to obtain the actual machining errors. Machine tool errors were modeled in forward and backward directions according to the axis movement direction to consider the effects of backlash errors on the measurement data, and model parameters were determined by measuring a cube array artifact. A rectangular workpiece was machined and then measured with a touch probe as a verification experiment. Machining experiments showed that the machining errors were reduced to within the designated tolerance after compensating for the actual machining errors by modifying the original footpath for the next-step machining.