The chaotic correlation fiber loop ring down system with loss compensation is initially developed. We use a chaotic laser to drive a fiber loop and measure the autocorrelation coefficient ring down time of chaotic laser. In this system, the input signal not only acts as a seed signal for amplification but also acts as signal power stabilization in the loop. Due to the chaotic signals continuously injected into the loop , this is different from injecting only one pulse signal in pulse fiber loop ring down with loss compensation and do not worry about crosstalk of the signals. The system is characterized in terms of the ring down baseline stability and the minimum detectable optical loss. The detectable optical loss of 1.03×10-4 Np and the baseline stability of 0.846% can be easily obtained.