By employing 2D plane wave expansion (PWE) and finite difference time domain (FDTD) methods,a photonic crystal waveguide (PCW) based on the compound square lattice structure is presented. Band-gap can be observed for TM polarization and compared with the simple lattice structure based on the same material,the band-gap is increased by 62.7%. Byoptimizing the parameters we get the PCW with the propagation only near the wavelength of 1.55 μm and a flat group indexcurve in a wide wavelength range of 40 nm. And the group velocity dispersion compensation can be realized by thestructure optimization. The results provide a reference for the study and application of photonic crystal waveguide based on the compound lattice structure.