A comprehensive method applying a nonlinear frequency compression (FC) as complementary to multi-band loudness compensation is proposed, which is able to improve loudness compensation and simultaneously increase high-frequency speech intelligibility for digital hearing aids. The proposed nonlinear FC (NLFC) improves the conventional methods in the aspect that the compression ratio (CR) is adjusted based on the speech intelligibility percentage in different frequency ranges. Then, an adaptive wide dynamic range compression (AWDRC) with a time-varying CR is applied to achieve adaptive loudness compensation. The experimental test results show that the mean speech identification is improved in comparison with the state-of-art methods.