The giant magnetostrictive actuator (GMA) with giant magnetostrictive material (GMM) as the core component has wide applications in the field of precision drive and control. In this paper, through the analysis of the GMA coil, the loss and temperature rise characteristics of the GMA have been studied. Then, COMSOL Multiphysics software has been used to model the heat source distribution of the GMM actuator, and the factors affecting the working temperature of the GMM rod have been analyzed. Finally, based on the use requirements of the GMA, magnetic field, and internal temperature distribution characteristics, the heat dissipation scheme of the coil is proposed, and the experimental platform of the GMA with a thermal compensation function is built to verify the temperature characteristics and thermal compensation effect. Studying the internal temperature distribution law of the GMA not only has a guiding significance for the temperature control of the actuator and the design of the cooling system but also reduces the influence of the coil thermal effect on the performance of the transducer and lays the foundation for making full use of the GMM’s potential in high-power transducers.