Abstract: A method for compensating thermally induced displacement between a workpiece clamped for machining relative to a tool arranged on a tool holder of an automatically controlled machine tool, such as a lathe, where use is made of mechanical sensors to sense and correct deviations between programmed and actual tool positions relative to the workpiece. With the workpiece clamped in place, a mechanical workpiece sensor clamped in a work holder is adjusted to make mechanical contact with the workpiece in the actual position in which the workpiece is to be machined or has been previously machined. Adjustment to a thermally compensating position of a tool measuring device coupled to a mechanical tool sensor is made via the adjusted mechanical workpiece sensor.