The object of this research is to analyze the error sources of the hexapod machine and develop strategies to enhance its accuracy. The most significant error sources are identified as the geometric errors, thermal errors and errors due to finite stiffness. Subsequently, considering major inaccuracy factors related to the manufacture, geometry, and kinematics of such machines, a mathematical error is presented based on volumetric error analysis. In order to understand the character and propagation of errors on the Hexapod machine tool, sensivity analysis is used to investigate the contribution of the error sources on accuracy and an error analysis system that graphically presents the total error distribution is developed. The developed error compensation system is based on the measurement and modeling of the behavior of the machine tool. It is composed of an interpolation algorithm based on shape functions for error prediction and a recursive software compensation procedure. In addition, an automatic NC code converting software was developed so that the developed system could be applied to practical machine with Hexapod machines.