This overview introduces how cutter compensation functions within SWOOD to improve machining accuracy and flexibility. The video explains how compensation accounts for tool size, wear and deflection, allowing toolpaths to stay centred without manual offsets. It outlines when compensation is applied in pocket, wall‑pocket and contour operations, and highlights differences between mortising and standard pocketing. The session also covers post‑processor behaviour, machine‑level compensation and scenarios where simulation or compensation may be limited, offering practical guidance for achieving consistent machining results.