Accurate measurement of phase current is crucial in a current-controlled PMSM drive system. Current measurement error directly deteriorates torque control performance. This paper analyzes effects of the current measurement error on the phase current and the output voltage of the current controller. Based on the analysis, a compensation method is proposed. It compensates the offset error and the scaling error separately without any additional hardware but using the output voltage reference of the current controller. The proposed method can be applied to general current-controlled PMSM drives in whole operation range. Experimental results verify the effectiveness of the proposed compensation method.