Aiming at the horizontal angle measuring principle and system composition of photoelectric autocollimatic theodolite. The measuring error components,which effect measurement accuracy of the horizontal angle, are analyzed comprehensively and calculated quantitatively. The compensation methods are put forward for system errors. By the analyzing and compensating these errors, the measurement accuracy of the photoelectric autocollimatic theodolite horizontal angle is improved to 0.5″, which meet the accuracy requirements of level Ⅰelectronic theodolite.