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 flight controller to control a flight path of the UAV, a tether compensation mechanism through which the tether extends, at least one sensor to identify movement in the tether, and a tether response controller. Based on movement identified in the tether, the tether response controller may determine a complementary response and direct the tether compensation mechanism to brace the tether against the movement. Thus, the tether compensation mechanism may stabilize sway or movement in the tether by moving against the sway or movement, which may help prevent the tether from undesirable swinging when lowering the item from the UAV for delivery, for example, or at other times.