Because of the importance of transmission line parameters and the complexity of factors influencing the parameters， the parameters， especially zero-sequence parameters should be practically measured. The distribution characteristics of the transmission lines are analyzed to get the lumped parameters model. Based on the increment method to measure the zero-sequence parameters， an improved algorithm is proposed to revise the parameter measurement by using the capacitive current component. The compensation foundation is established and formula of compensation degree symbolized withη is also given. Theoretical analysis shows that the compensation algorithm can improve the measurement accuracy. Finally， the simulation model of a high voltage transmission line with mutual inductance is developed in PSCAD to validate this new algorithm with the chosen compensation degree for improvement of the measurement accuracy.