The ecological compensation principle was introduced by the Dutch government in 1993. This principle is designed to enhance the input of nature conservation interests in decision-making on large-scale development projects and to counterbalance the ecological impacts of such developments when implemented. This article evaluates the application of the Dutch compensation principle in highway planning. Six current highway projects reveal consistent implementation of this principle, although provincial policies on compensation and a national method for identifying compensation measures are still under development. As the planning process has not yet been completed for all the projects, no general conclusions can be drawn on the impact of the compensation principle on highway decision-making. Nevertheless, several examples show that the principle stimulates project initiators to develop alternative routes or route sections in order to avoid or reduce ecological impacts and the need for coherent compensation measures. If the compensation principle is to be properly implemented in the context of highway planning, particular attention should be paid to the following aspects: (1) sequential assessment of overall project legitimacy and the necessity of intersecting protected areas and compensation measures. (2) the initiator's attempts to avoid and mitigate ecological impacts in developing alternative routes prior to compensation for impacts, and (3) the role of uncertain ecological impacts in identifying compensation measures, especially those concerning habitat isolation.