The existing interpolation algorithm cannot meet the need of high-speed and high-accuracy machining of a free-form surface. So this paper proposed a correcting and compressing interpolation algorithm. Depending on the distance and angle evaluated from the adjacent command points, the machining path of free form can be divided into two machining types. For those regions where the accurate figure is critical such as corners, the convention linear interpolation is performed exactly between the adjacent command points. For those regions having a large radius of curvature where the smooth figure is critical, firstly, the interior point selection method based on circle transition is derived to reduce the tolerance between the machining path and the original surface; secondly, the interior point correction method based on the least-square method is proposed to reduce the calculation error and round-off error in the interior point and estimate the first- and second-order derivative vectors of the interior point; thirdly, the shape-defining point is selected by the bend direction of the machining path and fitted to a quintic spline curve which has the C2 continuity; fourthly, the fitting accuracy controlling method is proposed to ensure the machining accuracy; lastly, the curve interpolation is performed on the fitted smooth curve. Machining tests carried out on a vertical machining center show that the proposed algorithm can improve the machining efficiency and machining quality of a free-form surface. [ABSTRACT FROM AUTHOR]