A 2-year field study was conducted at Texas Agricultural Experiment station, Lubbock to evaluate the compensatory ability of cotton (Gossypium hirsutum L.) to two levels (1 or 3 bugs per plant; 1PP or 3PP) of artificial infestation of Lygus at two crop stages (pre-flower and early flower) for three consecutive weeks. No significant difference in plant height was observed during the growing season and at pre-harvest. Number of sympodia did not vary significantly among treatments. The 3PP treatment resulted in 48 and 36% fruit loss for pre-flower and early flower stages, respectively. Pre-flower fruit loss was not fully compensated and there was a net loss of lint yield in both 1PP and 3PP treatments. Reduction in yield loss was primarily due to plants' inability to compensate for vertical positions. Compensatory response of cotton was observed when bug treatments were deployed in early flower stage. While plants were unable to fully compensate for fruit loss caused by 3 bugs/plant, the lateral fruiting positions overcompensated the yield in both 1PP and 3PP treatments. Reduction in yield due to the plant's inability to compensate for lost vertical positions was high enough for plants to compensate at 3PP treatment.