A toroidal yoke for an electron‐beam lithography system is compensated for deflection placement errors that normally result from eddy currents generated within the coil windings, as well as driver current settling time and inductive or capacitive coupling within the yoke. Compensation is achieved through the addition of passive conductive material along the outer periphery of the yoke. Both theoretical and experimental results are presented. Agreement is shown to be very good in a specific E‐beam lithography system.