This paper proposes a dynamic compensation scheme for input-constrained feedback linearizable nonlinear systems to cope with the windup phenomenon. Given a dynamic feedback linearizing controller designed without considering its input constraint, an additional dynamic compensator is proposed to account for the constraint. This dynamic anti-windup is based on the minimization of a reasonable performance index. The proposed strategy is a nonlinear extended version of [Park, J.-K., & Choi, C.-H. (1995). Dynamic compensation method for multivariable control systems with saturating actuators. IEEE Transactions on Automatic Control, 40(9), 1635-1640] with simplified derivation of an optimization solution under relaxed assumptions. The parameter matrices and structure of the solution are explicitly decided by mathematical optimization for infinite horizon without tuning of design parameters unlike previous schemes. During input saturation, the role of the anti-windup scheme with the proposed dynamic feedback compensator is to maintain the controller states to be exactly the same as those without input saturation. The local asymptotic stability and the total stability of the resulting systems are proved. The usefulness of the proposed design method is illustrated by comparative simulations for a constrained control system. (C) 2008 Elsevier Ltd. All rights reserved.