A power supply controller and method for improving the transient response of the power supply controller. The power supply controller includes a pulse width modulation control module connected to a feedback network. The feedback network is composed of an amplifier having an inverting input terminal, a non-inverting input terminal, and an output terminal. A compensation network is coupled between the inverting input terminal and the output terminal of the amplifier and a reference voltage is coupled to the non-inverting input terminal of the amplifier. A switch is coupled between the output terminal of the amplifier and an input terminal of the compensation network. The transient response of the controller is improved by operating the controller in a closed loop compensation configuration during a continuously pulsing operating mode and in an open loop compensation configuration during a pulse skip operating mode.