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What Is a Compass? A compass is a device that uses the Earth’s magnetic field to indicate directions. Thanks to the magnetic needle inside it, the compass always points north, enabling people to navigate without losing their way on land or at sea. How Does a Compass Work? The Earth behaves like a giant magnet, with its north and south poles functioning similarly to those of a magnet. The thin magnetic needle inside the compass aligns itself with this magnetic field in a north-south direction. Th