Compensatory justice refers to the provision of resources to a victim of injustice with the goal of minimizing or reversing the impact of harm done by the injustice. We propose a conceptual framework for understanding people’s reactions to compensatory justice. In particular, we review theory and research relevant to understanding how compensatory justice affects individuals’ instrumental, relational, and moral concerns following a transgression. Moreover, we explain how characteristics of (a) the transgression (e.g., offense severity, type of violation), (b) the compensatory response (e.g., source of compensation, type of compensation), and (c) victims and third parties (e.g., emotions, power) are likely to influence reactions to and desires for compensatory justice. Given the relative lack of empirical attention devoted to compensatory justice in the literature, we conclude with a call for future research investigating how, when, and why victims and third parties will perceive the provision of compensation to be an appropriate response to injustice in organizational contexts.