This paper dealt with the influence of harmonic voltages on arrester diagnostics and its compensation method by using a designed Pspice arrester model. A pure sinusoidal voltage and its 3$^{rd}$ harmonic voltage were applied to the model, and the leakage current components were analyzed. The simulation results have shown that the peak value of resistive leakage current depends not only on the phase of the 3$^{rd}$ harmonic voltage but also on the magnitude of it. In this paper, an approximated 5$^{th}$ order polynomial formula by the Least-Square-Technique was derived, and correction factors which compensate the error caused by the 3$^{rd}$ harmonic voltage were calculated.