Variable timeslices for processing latency-dependent workloads

A virtualization host may implement variable timeslices for processing latency dependent workloads. Multiple virtual compute instances on a virtualization host may utilize virtual central processing units (vCPUs) to obtain physical processing resources, such as one or more central processing units (CPUs). A vCPU currently utilizing a CPU to performing processing work according to a scheduled timeslice may be preempted by a latency dependent vCPU before completion of the scheduled timeslice. The latency-dependent vCPU may complete processing work, and utilization of the CPU may be returned to the vCPU. A preemption compensation may be determined for the scheduled timeslice to increase the scheduled timeslice for the vCPU such that utilization for the vCPU is performed according to the increased scheduled timeslice.