An image compensation correction method and a banknote recognition and detection device. The image compensation correction method is applied to the banknote recognition and detection device. The banknote recognition and detection device comprises: a micro controller; a programmable logic device which is connected to the micro controller; an AD chip, a drive circuit and a static random access memory which are connected to the programmable logic device respectively; and a contact image sensor which is connected to the AD chip and the drive circuit respectively. A compensation correction lookup table is pre-stored in the static random access memory, and the programmable logic device can acquire banknote compensation correction data corresponding to a banknote image pixel point by accessing the static random access memory, and send same to the micro controller. Therefore, the micro controller acquires banknote compensation correction data directly from the programmable logic device rather than performing compensation correction on the obtained banknote image pixel point any more, thereby improving the system performance of the micro controller, and thus improving the work efficiency of the banknote recognition and detection device.