A technique to compensate the geometry errors of industrial robot using Laser Tracker System (LTS) has been presented in this paper. A Spherically Mounted Retro-reflector (SMR) is mounted on the end-effector of industrial robot. The positions of SMR are measured by LTS and compared with the nominal value of industrial robot to get geometry error database of robot. The updated error database, together with real-time measuring of the positions on the robot’s end-effector can be used to compensate the geometric errors of the robot. Using this technique to compensate the industrial robot, the geometry errors can be decreased from 0.1mm to 0.04mm.