In order to eliminate the tangent subdivision error caused by nonorthogonal Moiré fringe signals,a new algorithm is presented to compensate the real-time phase laggard error.After analyzing the effect of the phase nonorthogonality on subdivision precision,the cosine signal phase error is worked out based on sampling the signal with zero value well and the actual phase formula is determined clearly.According to the polarity and amplitude of the signal with laggard phases,the shorter periodic signals are compensated in a certain section phase respectively and the factors influencing the compensation precision are analyzed.Experimental data indicate that this algorithm can compensate the phase error perfectly and can depress the effect of the nonorthogonal signals on the subdivision precision.Obtained results show that the subdivision error by using the proposed method reduces to 10 percent of the original error and the subdivision and location precisions are improved greatly.