A method of finding a dip angle in a tilt-compensated electronic compass includes the steps of a) setting a predetermined azimuth angle indicative of a horizontal status of a geomagnetic sensor to a reference azimuth angle; b) if the compass is slightly tilted, stepwise-increasing a dip angle within a predetermined dip angle search range, and calculating azimuth angles associated with individual dip angles; c) comparing the calculated azimuth angles with the reference azimuth angle, and finding one azimuth angle, which is closest to the reference azimuth angle, among the calculated azimuth angles; and d) setting the dip angle applied to the closest azimuth angle to a specific dip angle associated with a corresponding azimuth angle, such that a more accurate azimuth angle can be detected by the on the basis of the calculated dip angle.