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This paper presents an improved dynamic E&S vector hysteresis model to increase modeling accuracy under non-elliptic B-waveforms and describes its implementation to the finite element method (FEM). Since the dynamic E&S model is expressed via magnetic reluctivity and hysteresis coefficients modeling the vector hysteresis property of electrical steel sheet, its modeling accuracy strongly depends on the method of determination of the coefficients. The proposed model increases the modeling accuracy by improving the coefficient calculation algorithm especially under non-elliptic distorted magnetic flux density conditions. The proposed model is incorporated with FEM and applied to iron loss analysis of a three-phase induction motor.