Although the rule of cognitive aging appears to be one of generalized decline with advancing age, much recent theoretical and empirical work has addressed a variety of potential exceptions to this rule. One mechanism through which decline might not be experienced is known as compensation. We describe a conceptualization of compensation that applies to lifespan cognitive development, in general, and the aging of prose processing skills, in particular. Our model of the forms and processes of compensation directs attention to the developing dynamics of cognitive skills and compensatory mechanisms. We outline three main approaches to research on compensation in cognitive aging: a) the logical experimental, b) on-line observation and manipulation, and c) several verbal report procedures. In summarizing our own research program, we emphasize that a) each of these approaches can render valuable information, b) each have some limitations, and c) there are potential theoretical benefits from employing more than one of them in a given study.