In this paper, an improved high-order model-free adaptive iterative control (IHOMFAILC) method for a class of nonlinear discrete-time systems is proposed based on the compact format dynamic linearization method. This method adds the differential of tracking error in the criteria function to compensate for the effect of the random disturbance. Meanwhile, a high-order estimation algorithm is used to estimate the value of pseudo partial derivative (PPD), that is, the current value of PPD is updated by that of previous iterations. Thus the rapid convergence of the maximum tracking error is not limited by the initial value of PPD. The convergence of the maximum tracking error is deduced in detail. This method can track the desired output with enhanced convergence and improved tracking performance. Two examples are used to verify the convergence and effectiveness of the proposed method.