What does a magnetic compass indicate?

A magnetic compass indicates magnetic north, which is the direction that a magnetic compass points based on the Earth's magnetic field rather than its geographical characteristics. Magnitude and position of the magnetic north pole shift over time due to changes in the Earth's magnetic field, and it does not align precisely with true north—the direction along the Earth's surface towards the North Pole.

Understanding this distinction is important for navigation and outdoor activities, as it means that when using a magnetic compass, one should be aware that any navigational planning must account for the difference between magnetic north and true north to ensure accuracy.