Compensation for marine ecological damage is a compensation mechanism proposed for the affected marine ecological environment, which aims to realize the paid usage of the environment during the development process or in the utilization of marine ecosystems. On the basis of these understandings, this study discusses the progress of research on the subject of ecological compensation, the standards, method of compensation, and measurements of follow-up guarantees. The literature review shows that previous research was mainly focused on compensation for the damages caused by marine development projects, but less on those from land-based pollution. Marine ecological damage involves complex stakeholders, and the compensation chain of ‘human-human-sea’ has not yet been fully formalized. The calculation of a compensation standard still remains a difficult task in this field of research. Most researchers are focused on the marine ecological damage assessment, but there is a gap between the damage assessment and the compensation standard. To a certain extent, the compensation standard for marine ecological damage would be the result of the coupling effects between ecological damage assessments and the compensation system. There exist three kinds of compensation modes for marine ecological damage, namely, economic compensation, resource compensation, and habitat compensation. The selection of compensation modes are mainly affected by technical feasibility and economic efficiency. Moreover, supporting and regulatory systems are required for its effective implementation. In summary, compensation for marine ecological damage is a complex process. The establishment of the marine ecological damage compensation mechanism will involve the marine ecological damage assessments, compensation elements, guaranteed conditions, and sustainable development, with all of which are indispensable to the mechanism's success.