Provided are a timing controller, sensing compensation method thereof, and display panel. The timing controller includes a sensing module (501), a built-in picture generation module (502), a multi-channel data selection module (503) and a processing output module (504). The sensing module is configured to sense whether a sensing compensation instruction is received, when received, notify built-in picture generation module and multi-channel data selection module; built-in picture generation module is configured to receive a notification and generate a first video signal; multi-channel data selection module is configured to receive a notification, switch from a display mode to a built-in picture mode, select first video signal as a video source, output first video signal to processing output module; processing output module is configured to process first video signal and output processed first video signal to the display panel so that the display panel performs sensing compensation based on the first video signal.