In this study, a numerical analysis of offshore installation using a floating crane with heave compensator is carried out in time domain. The motion analysis of crane vessels is based on floating body dynamics using convolution integral and the crane wire is treated as simple spring. The lifted structure is assumed as a rigid body with 3 degree-of-freedom translational motion. The heave compensator is numerically modelled by the generalized spring-damper system. Firstly, forced motion simulations of crane wire system are carried out to figure out the basic principle of heave compensator. The transfer function of crane wire system is obtained and effective wave period of heave compensator are found. Then, coupled analysis of crane vessel, crane wire, and lifted structure are performed in regular and irregular sea conditions. Two different crane vessels and two lifted structures (suction pile and manifold) are considered in this study. Through a series of numerical calculations, the effective zone of heave compensator is investigated with respect to wave period and crane wire length.