This study aims to provide a comprehensive performance assessment, identify current research hotspots, and predict future trends in ecological compensation. A bibliometric analysis of 2,161 entries from the Web of Science core database was conducted. Utilizing CiteSpace and VOSviewer tools, the study evaluated the effectiveness of publications, organizations, research hotspots, and trends. The findings indicate a steady increase in publications on ecological compensation since 1987. Studies on ecological compensation have, among many topics, been primarily concerned with managing watersheds’ water environments, protecting agricultural environments, planting trees, conserving and restoring natural ecosystems, and protecting landscapes. The People’s Republic of China, the United States, Australia, and Germany show a considerable amount of cooperation, and the Chinese Academy of Sciences, Normal University of Beijing, and Beijing Forestry University get higher rankings in paper output. Further analysis reveals a shift from qualitative to quantitative research and the development of ecological compensation models, indicating emerging regional trends. This study highlights the areas needing further investigation and outlines future research directions, enriching the literature in this field and keeping scholars informed on the latest developments in ecological compensation.