The linear positioning laser calibration setup of CNC machine tools is capable of executing machine tool laser calibraiotn and backlash compensation. Using this setup, hole locations on CNC machien tools will be correct and machien tool geometry will be evaluated and adjusted. Machien tool laser calibration and backlash compensation is a simple and straightforward process. First the setup is to 'find' the stroke limits of the axis. Then the laser head is then brought into correct alignment. Second is to move the machine axis to the other extreme, the laser head is now aligned, using rotation and elevation adjustments. Finally the machine is moved to the start position and final alignment is verified. The stroke of the machine, and the machine compensation interval dictate the amount of data required for each axis. These factors determine the amount of time required for a through compensation of the linear positioning accuracy. The Laser Calibrator System monitors the material temperature and the air density; this takes into consideration machine thermal growth and laser beam frequency. This linear positioning laser calibration setup can be used on CNC machine tools, CNC lathes, horizontal centers and vertical machining centers.