Because it offers an effective means to alleviate current ecological problems and a way to coordinate sustainable economic and social development with protection of the environment, eco-compensation has become a subject of interest to scholars and governments all over the world. A great many studies have been carried out and eco-compensation schemes have been put into practice; there have been many fruitful results. Based on a review of related research and practices, this paper attempts first to discuss domestic and international eco-compensation research and practices in terms of the meaning of eco-compensation and its components (stakeholders, compensation criteria, compensation modes, compensation approaches, compensation funds, and compensation effects). Next, taking into consideration the above discussion, the paper looks at the differences between Chinese and international eco-compensation measures. Finally, existing problems with eco-compensation research and practices in China are summarized and some suggestions are put forward.