A compensating method based on continuously deflecting the dressing wheel is proposed to eliminate twist error of the lead modification tooth flank. Combining the tooth flank contact trace and the lead modification curve, the mechanism of the twist error of the modified tooth flank is first analyzed. Second, a tooth profile error model is developed at the upper and lower end faces. The tooth flank twist amount is calculated by subtracting the tooth profile error at the upper and lower end faces. Then, the tooth profile slope deviation of the twisted tooth flank is transformed into the pressure angle deviation of the tooth profile, and the method of compensating the pressure angle of the worm wheel is applied to eliminate the pressure angle deviation of the tooth flank caused by the twist error. The grinding partition of the worm wheel is performed according to the diagonal grinding process, and a worm wheel dressing method for continuously deflecting the dressing wheel is provided to compensate for the twist error of the lead modification tooth flank. Finally, the continuous generating grinding experiment of the lead modification gear verifies the feasibility of the proposed method.