In this paper, an improved online torque compensation strategy considering phase torque-generation capability is proposed to enhance the conventional torque-sharing function (TSF), thus reducing torque ripple for switched reluctance machines (SRMs). The improvements are mainly attributed to two aspects: First, the phase turn-on angle and TSF starting angle are separated. Thus, the phase turn-on angle can be advanced independently to enhance the torque-generation capability of the incoming phase. Second, to generate the desired torque with minimum current, the torque per ampere (TPA) characteristic is considered for commutation region separation. This can ensure that in each separated region, the phase with a stronger torque-tracking ability is utilized for torque error compensation. Accordingly, efficiency is not sacrificed. In addition to improving the TSF, a direct instantaneous torque control (DITC) method combined with a PWM regulator is proposed to reduce large torque increments due to the limited control frequency. As a result, the torque ripple can be further suppressed. Finally, an experimental setup is established, and tests are conducted under different working conditions. The results demonstrate the effectiveness of the proposed method.