This paper highlighted the problem of discontinuous conduction encountered with chopper fed de drives under light loads using on-line fuzzy compensation technique. As the load current drops below a critical value depending on the duty cycle (K), there is a nonlinear increase in output voltage. An analytical study was conducted to determine the amount of nonlinear duty cycle compensation required to linearize the load characteristics. The duty cycle compensation offset (△K) takes the form of a negative value of the chopper duty cycle (K) to maintain a constant output voltage equal to that obtained under continuous conduction. The application of this crisp compensation in the form of a lookup table requires considerable memory and interpolation is unavoidable. To circumvent these difficulties the compensation values were fuzzified. A fuzzy rule base was constructed using two input universes of discourse: the armature current (Io) and the original duty cycle (K). The output universe of discourse is the negative offset of the duty cycle (△K). An AVR Atmega 8535 is used to control the chopper duty cycle and perform on-line fuzzy compensation. On-line fuzzy compensation schemes were tested, by using simulation and validated experimentally.