Rotating blade vibration measurements are very important for any turbomachinery research and development program. The blade tip timing (BTT) technique uses the time of arrival (ToA) of the blade tip passing the casing mounted probes to give the blade vibration. As a non-contact technique, BTT is necessary for rotating blade vibration measurements. The higher accuracy of amplitude and vibration frequency identification has been pursued since the development of BTT. An improved circumferential Fourier fit (ICFF) method is proposed. In this method, the ToA is not only dependent on the rotating speed and monitoring position, but also on blade vibration. Compared with the traditional circumferential Fourier fit (TCFF) method, this improvement is more consistent with reality. A 12-blade assembly simulator and experimental data were used to evaluate the ICFF performance. The simulated results showed that the ICFF performance is comparable to TCFF in terms of EO identification, except the lower PSR or more number probes that have a more negative effect on ICFF. Besides, the accuracy of amplitude identification is higher for ICFF than TCFF on all test conditions. Meanwhile, the higher accuracy of the reconstruction of ICFF was further verified in all measurement resonance analysis.