A nonlinear capacitance compensation technique is presented in this paper to enhance the linearity of a power amplifier (PA) in the GaN process. The method involves placing an MSM varactor device alongside the GaN HEMT device, which works as the amplifying unit such that the overall capacitance observed at the amplifier input is constant, thus improving linearity. This approach is a reliable and straightforward way to improve PA linearity in the GaN process. The proof-of-concept prototype in this study involves the fabrication of a PA device using a standard GaN HEMT process, which successfully integrates the proposed compensation technique and demonstrates excellent compatibility with existing processes. The prototype has a saturation output power of 18 dBm, a peak power-added efficiency of 51.8%, and a small signal gain of 15.5 dB at 1 GHz. The measured AM–PM distortion at the 5 dB compression point is reduced by more than 50% compared to that of an uncompensated device. Furthermore, the results of third-order intermodulation distortion demonstrate the effectiveness of the linearity enhancement concept, with values improved by more than 5 dB in the linear region compared to those of the uncompensated device. All of the results demonstrate the potential utility of this design approach for wireless communication applications.