A tether compensated unmanned aerial vehicle (UAV) is described. In one embodiment, the UAV includes a winch with a tether to lower an item from the UAV for delivery, a tether compensation mechanism configured to contact the tether as it extends from the winch, and a flight controller to control a flight path of the UAV. The flight controller is also configured to direct the tether compensation mechanism to clamp the tether based on the flight path of the UAV. Further, based on movement identified in the tether using a sensor, a tether response controller can determine a complementary response and direct the tether compensation mechanism to brace the tether against the movement. Thus, the tether compensation mechanism can help stabilize sway or movement in the tether, which can help prevent the tether from undesirable swinging.