The runout of the cutting edge significantly affects the cutting force, wear, and the process stability. Generally, the postprocessor of five-axis tool grinding machine ignores the clamping error of blank. Hence, this paper developed a postprocessor method with compensation of tool clamping errors to minimize runout of cutting edge for tool grinding machine. This method includes the kinematic model and the measurement model of clamping error for the tool grinding machine. This kinematic model converts CL data into NC data and converts NC data into CL data. The measurement model for measuring and calculating the clamping error of blank. The clamping error was inputted into the kinematic model of machine to compensate the clamping error. The solution strategy of the kinematic model was built, and is suitable for five-axis tool grinding machine. A postprocessor was subsequently developed according to the algorithm presented. Finally, the effectiveness of postprocessor was confirmed by the grinding experiment.