The present invention provides a system and method of modifying the mask layout shapes of an integrated circuit layout design to compensate for reticle field location-specific systematic CD variations resulting from mask writing process variations, lens imperfections in lithographic patterning, and photoresist process variations. Called PLC (Process-optimized Layout Compensation), each set of compensation rules according to the present invention is specifically tailored for a particular mask-writer-patterning-tools-and-resist-process combination, and are performed on a reticle-wide basis. Furthermore, for each geometric shape in the mask layout, the amount of modification is determined based on a categorization of the type of the shape, the specific location in the reticle field the particular shape falls in, its context (i.e., surrounding patterns, orientation, etc.), as well as certain photoresist parameters to be used in the patterning process.