When someone reimburses you they pay you for the cost of something. Essentially they give you money that they owe you. It is a form of compensation. For example: - Sorry I broke the lamp. I promise to reimburse you (pay for it / get another one) - The investors should be reimbursed for their losses after his incompetence. It could be an expected compensation though: - Your expenses will be reimbursed (if you have to pay for something to do the job you will be paid back) Compensation itself is more general. It could be a way to pay someone back - like the examples above - or it could be additional payments for perceived losses as well. These might include the stress you suffered, hassle you went through, etc. So, when someone deserves compensation for something - when they are compensated - it is usually a mix of being reimbursed for the expense they suffered and sometimes some additional money for the hassle/hardship caused.