A method and associated system for compensation of vehicle speed lag resulting from changing load conditions in a continuously variable transmission (CVT) vehicle includes detecting and measuring true engine torque resulting from load changes placed on the vehicle engine. A true engine speed droop is calculated from the true engine torque. A compensated engine speed signal is generated based on the calculated true engine speed droop and is applied to the engine to produce a true engine speed that corresponds to a target engine speed at the load condition corrected for true engine speed droop.