The new balancing method is the result of attempts through current practice towards satisfying the objective of an ideal balancing process. Balancing of the rotor as it spins, does not generate debris, simple, low cost and reliable. Experimental simulator is fabricated for implementing this balancing technique. Fabricated model consists of two hollow shafts, heating coil, slip ring, carbon brushes, pulley, journal bearing, wooden platform, coupling and motor.A new method has been devised that allows a rotor to be balanced as it rotates, without physical contact. The method accomplishes balance correction by means of local heating under the action of centrifugal forces. The important aspects of this new method are location of heating coil, local heating method and method of producing controlled deformation has been modeled analytically and experimentally