This paper examined the relationships between the Hausa and labur (Jaaku) derivation and compound processes. It compared these two languages by showing the similarities and differences in their derivation and compound formation. Although the languages (i.e Hausa and Labur) are from different language phylum, the paper identified some areas of similarities and differences in their derivation and compound processes. Therefore, the paper enumerated and compared some of the derivation and compound processes of forming words in the Hausa and Labur languages. A sample of descriptive approach was employed in analyzing the data obtained. Therefore, the analytical comparative model of Nida (1949) and linguistic analysis of Carl (1996) cited in Rubba (2004) were adopted. It is believed that the paper contributed to the current trend in the field of language comparison.