This invention discloses a clock generation circuit and a clock generation method for generating a clock. The clock generation circuit includes a reference clock generation circuit, which is installed in a chip for independently generating a reference clock; a temperature sensor for sensing an ambient temperature to generate temperature information; a temperature compensation module, coupled to the temperature sensor, for generating a temperature compensation coefficient according to the temperature information; and a clock adjusting circuit, coupled to the clock generation circuit, for generating the clock according to the reference clock and the temperature compensation coefficient. The temperature compensation module generates the temperature compensation coefficient dynamically such that the frequency of the clock approaches a target frequency and does not substantially vary with the temperature.