Summary: Direct numerical simulation (DNS) of complex flows require solving the problem on parallel machines using high accuracy schemes. Compact schemes provide very high spectral resolution, while satisfying the physical dispersion relation numerically. However, as shown here, compact schemes also display bias in the direction of convection–often producing numerical instability near the inflow and severely damping the solution, always near the outflow. This does not allow its use for parallel computing using domain decomposition and solving the problem in parallel in different sub-domains. To avoid this, in all reported parallel computations with compact schemes the full domain is treated integrally, while using parallel Thomas algorithm (PTA) or parallel diagonal dominant (PDD) algorithm in different processors with resultant latencies and inefficiencies. For domain decomposition methods using compact scheme in each sub-domain independently, a new class of compact schemes is proposed and specific strategies are developed to remove remaining problems of parallel computing. This is calibrated here for parallel computing by solving one-dimensional wave equation by domain decomposition method. We also provide the error norm with respect to the wavelength of the propagated wave-packet. Next, the advantage of the new compact scheme, on a parallel framework, has been shown by solving three-dimensional unsteady Navier–Stokes equations for flow past a cone-cylinder configuration at a Mach number of 4.Additionally, a test case is conducted on the advection of a vortex for a subsonic case to provide an estimate for the error and parallel efficiency of the method using the proposed compact scheme in multiple processors.