Microsurgery requires constant attention to the involuntary motion due to physiological tremors. In this work, we demonstrated a simple and compact hand-held microsurgical tool capable of surface tracking and motion compensation based on common-path optical coherence tomography (CP-OCT) distance-sensor to improve the accuracy and safety of microsurgery. This tool is miniaturized into a 15mm-diameter plastic syringe and capable of surface tracking at less than 5 micrometer resolution. A phantom made with Intralipid layers is used to simulate a real tissue surface and a single-fiber integrated micro-dissector works as a surgical tip to perform tracking and accurate incision on the phantom surface. The micro-incision depth is evaluated after each operation through a fast 3D scanning by the Fourier domain OCT system. The results using the surface tracking and motion compensation tool show significant improvement compared to the results by free-hand.