This paper presents new approach for shrinkage compensation in Selective Laser Sintering (SLS) process to improve the accuracy of parts produced. By optimizing tools like Pattern search tool and Genetic algorithm available in MATLAB 2011. Shrinkage is compensated along X, Y, Z direction of the part produced. The scaling factor used in this compensation is calculated from shrinkage model (It is the empirical relation between percentage shrinkage and the machine manufacturer, Shrinkage model). Software is available in MATLAB 2011, automate the compensation process. Two case studies were presented to quantify the effectiveness of the developed compensation approach over the existing compensation method. From the comparison experiments, the ability of the proposed compensation method in improving the accuracy of laser sintered parts is established..