Abstract Precise point positioning (PPP) technology has been widely used for more than a decade in timing and time transfer. Pseudorange bias caused by signal distortion will reach up ±3 ns, which cannot be neglected in sub-nanosecond level PPP timing and time transfer. We propose to improve the performance of PPP timing and time transfer by considering signal distortion bias (SDB). In principle, SDB will affect PPP timing and time transfer by influencing the initial clock offset. Then, it is verified by theoretical and experimental analyses. The theoretical results show that the impact of SDB on PPP timing can reach up 1.8 ns in different regions. Also, the impact of SDB on time transfer can reach up 0.8 ns in different regions even if the baseline length and receiver types are the same. For experimental results, the accuracy of PPP timing and time transfer improves with SDB correction. For time transfer, the RMSs are reduced by 54.8%, 61.1% and 17.6% for GPS, BDS3 and Galileo in all links, respectively. The clock frequency consistency obtained from different systems has been improved. And the frequency stability of time link with Hydrogen clocks is improved by 53.0% at 10000s interval with SDB correction.