In order to improve the efficiency and precision of leveling and centering, the principle and system implementation of automatic leveling and centering based on error correction is researched. Use the method of coordinate transformation, the effects of the centering, horizontal angle and vertical angle error caused by leveling error, then the mathematical compensation formulas is derived, and the structure and operating principle of automatic leveling and centering system based on the algorithm is set forth. Through experiment, the affect of angle measurement to the corrosion of leveling and centering error is discussed. The experiments reveal that the centering precision reaches 0.04mm. The results show that the system can improve the leveling and centering precision, reduce personal error, and shorten the equipment set-up and measurement time.