This paper analyzes the phase error for a three-dimensional (3D) shape measurement system that utilizes our recently proposed projector defocusing technique. This technique generates seemingly sinusoidal structured patterns by defocusing binary structured patterns and then uses these patterns to perform 3D shape measurement by fringe analysis. However, significant errors may still exist if an object is within a certain depth range, where the defocused fringe patterns retain binary structure. In this research, we experimentally studied a large depth range of defocused fringe patterns, from near-binary to near-sinusoidal, and analyzed the associated phase errors. We established a mathematical phase error function in terms of the wrapped phase and the depth z. Finally, we calibrated and used the mathematical function to compensate for the phase error at arbitrary depth ranges within the calibration volume. Experimental results will be presented to demonstrate the success of this proposed technique.