We studied how the human visual system recalibrates visual coordinates to compensate for saccadic eye movements. Observers made 20 horizontal saccades to a target on an otherwise featureless red screen, and reported the apparent position of a vertical green bar that was briefly displayed before, during, or after the saccade. Bars presented 50 ms before the beginning of the saccade, or after its completion, were perceived accurately and veridically. However, bars presented immediately prior to the saccade were systematically mislocated, either in the direction of the saccade or in the opposite direction, depending on the spatial position of the bar. This result has been verified by various techniques including Vernier offset estimation, and a forced-choice annulling task. When four bars (straddling the saccade target) were displayed in the interval −25 to 0 ms, they were seen to be merged into 1 bar (forced choice). None of these effects could be mimicked by causing the scene to move at saccadic speeds and amplitudes. The results suggest that each saccade is accompanied by a non-visual signal that displaces the retinal coordinate system, and a momentary compression of visual space. The perceptual compression may be instrumental in ensuring a smooth transition from fixation to fixation.