Volumetric error compensation is essential for improving the accuracy and performance of machine tools. However, due to the numerous error factors in machine tools, traditional direct measurement methods are time-consuming, limiting the application of volumetric error compensation. This paper proposes an efficient measurement, identification, and compensation method for volumetric errors on machine tools using a laserbar. This method collects spatial trajectory data of the machine tool at different base stations by the laserbar and applies the multilateral measurement to calculate the actual spatial coordinates of the theoretical measurement points. Then, the comprehensive volumetric error model of the machine tool is established, and the geometric error terms of the machine tool are identified using the position errors of the measurement points. Finally, a real-time error compensation system is developed based on the origin offset function of the numerical control system. The numerical simulation results show that the identified error items of the proposed method are consistent with those obtained from Etalon TRAC-CAL software. The experiment of error measurement, identification, and compensation is conducted on a 3-axis machining tool with in 1 hour. The volumetric accuracy of the machine tool is significantly improved after compensation, and the machining accuracy of the workpiece is increased by more than 50% . This method greatly increases the efficiency of volumetric error measurement and compensation for machine tools, showing broad application prospects in the industrial application. Keywords:machine tool