Abstract: The punitive compensation system for ecological and environmental damage is a rigid constraint established based on the composite harm to public and private interests, serving as one of the critical components in the protection and development of the ecological environment. Due to the current ambiguity in the principles and conditions governing the application of this system, there is a tendency for chaotic application and potential misuse in practice, highlighting an urgent need to establish reasonable guiding principles and stringent judgment criteria. Given that the conditions for the application of the proportionality principle in private law align with the punitive compensation system, and considering its comparative advantages over other restrictive guiding principles, employing the proportionality principle to optimize the application of the punitive compensation system for ecological and environmental damage is both justified and feasible. In practice, it is advisable to rigorously apply the three sub-principles embedded within the proportionality principle to redefine the constitutive elements and judgment criteria of the punitive compensation system for ecological and environmental damage, and to establish methods for the utilization and management of punitive compensation funds. This approach will effectively leverage the punitive function of the system and construct a balanced relationship among the infringer, the infringed, and the ecological environment.