Based on the physical metric proposed by the author, temperature distribution for compact objects, neutron stars and black holes, has been explained. Outside the extended horizon, the temperature is positive and approaches infinity at the extended horizon boundary. Inside the extended horizon, the temperature is negative which implies higher temperature than outside the horizon. This outcome is the result of the repulsive nature of gravity inside the extended horizon in the author’s physical metric. Overall, the physical metric explains temperature structure of compact objects more completely than the Schwarzschild metric, and is supported by the emerging evidence of X-ray data collected from neutron stars and black holes (AGN).