A receiver for compensating I/Q mismatch includes an analog down-conversion unit for receiving a radio frequency signal and down-converting the RF signal into a set of digital low intermediate frequency (IF) signals, a digital down-conversion unit receiving the set of digital low IF signals and down-converting the set of digital low IF signals into first and second baseband signals, and a compensation unit. The compensation unit receives the first and second baseband signals, calculates a compensation parameter based thereon, and compensates I/Q mismatch effect according to the first and second baseband signals and the compensation parameter so as to output a target signal.