This paper aims to study the impact of hardware impairments (HI) on the performance of spatial modulation (SM) system with full-duplex relay (FDR), namely SM-FDR system. To combat the negative effect of HI, a transmit antenna selection (TAS) scheme is applied at transmitter. The system performance in terms of outage probability (OP) and symbol error rate (SER) in case of HI and ideal hardware are compared. Furthermore, the impact of TAS on the system performance is also considered. This study derives successfully the exact expression of the OP and the approximate expression of the SER with TAS under the impact of both HI and residual self-interference (RSI). Both HI and RSI have strong influence on the performance of the SM-FDR system, especially at high data transmission rate, and the influence of the former is higher. However, the system performance is significantly enhanced, i.e. the SER is reduced, when TAS is applied. Therefore, it is recommended to apply TAS to improve the performance of SM-FDR systems when both HI and RSI exist in reality. Finally, all analytical expressions are validated by Monte Carlo simulation.