An on-chip process, supply voltage, and temperature (PVT) compensation technique for low-voltage CMOS digital circuits was proposed. Because the degradation of circuit performance originates from the variation of the saturation current in transistors, we developed a compensation circuit consisting of a reference current that is independent of PVT variations. The circuit is operated so that the saturation current in digital circuits is equal to the reference current. The operations of the circuit were confirmed by SPICE simulation with a set of 0.35-µm standard CMOS parameters. Monte Carlo simulations showed that the proposed technique effectively improves circuit performance by 71%. The circuit is useful for on-chip compensation to mitigate the degradation of circuit performance with PVT variation in low-voltage digital circuits.