Background and Purpose: Many efforts have been made so far to measure compassion fatigue (CF). There is no specific, precise, and comprehensive tool for CF measurement among nurses. This study aimed at developing and evaluating the psychometric properties of the Nurses’ Compassion Fatigue Inventory (NCFI). Methods: This methodological study was made in 3 consecutive phases: the hybrid concept analysis, the item pool generation, the psychometric validation. Results: The initial item pool contained 98 items. The psychometric properties were examined and exploratory factor analysis revealed a 6-factor structure. NCFI contained 35 items. The Cronbach’s alpha, intra-class correlation coefficient (ICC), and standard error of measurement (SEM) were 0.940, 0.935, and 7.6, respectively. Conclusion: The NCFI has acceptable reliability and validity. It can be easily used by nursing researchers and managers and even hospital nurses.