Adaptive mutations are often associated with a fitness cost. These costs can be compensated for through the acquisition of additional mutations, or the adaptations can be lost through reversion, in settings where they are no longer favored. While the dynamics of adaptation, reversion and compensation have been central features in several studies of microbial evolution, few studies have attempted to resolve the population genetics underlying how and when either compensation or reversion occur. Specifically, questions remain regarding how certain actors—the evolution of mutators and whether compensatory mutations alleviate costs fully or partially—may influence evolutionary dynamics of compensation and reversion. In this study, we attempt to explain findings from an experimental evolution study by utilizing computational and theoretical approaches towards a more refined understanding of how mutation rate and the fitness effects of compensatory mutation influence evolutionary dynamics. We find that high mutation rates increase the probability of reversion of deleterious adaptations when compensation is only partial. The existence of even a single fully compensatory mutation is associated with a dramatically decreased probability of reversion. Experimental results suggest that, in some contexts, compensatory mutations are not able to fully alleviate costs associated with adaption. Our findings emphasize the role of both mutation rate and the fitness effects of compensatory mutation in crafting evolutionary dynamics, and highlight the importance of population genetic theory for explaining findings from experimental evolution.