A novel scheme to design the hardware for error compensation function which self-compensates the truncation error of fixed width multiplier is presented. The proposed method statistically correlates the compensating carries in the truncated part with the carries generated at the truncation boundary in the non-truncated part. The method also utilises the selective dominant carry compensation for controlling the magnitude of error and hardware complexity. The proposed scheme of error compensation in truncated multiplier is investigated for random inputs, Fast Fourier Transform (FFT) application and Finite impulse response (FIR) application. This proposed scheme shows improvement in the major performance parameters such as mean absolute error,...