The positional accuracy and machining precision are mainly affected by backlash for semi-closed loop control CNC machine tool. And compensation for backlash is essential to improving the accuracy of machine tool. A method is developed to reduce contouring error in this paper. A simulated model of backlash and Open CNC system are used to verify compensation algorithm. Computational simulations and experimental results have shown that the contouring error due to backlash can be greatly reduced by using backlash compensation.