A new practical algorithm for linearization and compensation of a two dimensional transducers transfer characteristic is described in this paper. The algorithm is suitable for smart sensor applications which incorporate a microprocessor. The calculating routine is simple and the algorithm requires initial calibration at nine points only. Theoretical and practical results are given for the assumed and measured piezoresistive pressure sensor characteristics, respectively. After correction based on 3£3 calibration, the obtained error was less than one percent of the full scale output in both cases.