Numerical simulation of multiphase flows with large density ratios presents considerable challenges. Traditional Smoothed Particle Hydrodynamics (SPH) methods, while efficient in tracking multi-phase interfaces, often suffer from non-physical gaps near interfaces, compromising accuracy. In this paper, we develop an advanced multiphase model with enhanced interface continuity and stability, offering a reliable approach to both multiphase flows and fluid-structure interaction. The model employs equivalent continuity equations across different phases and refines the treatment of pressure and its gradients at interfaces through a smoothing technique, which effectively eliminates the non-physical gaps prevalent in the conventional SPH multiphase models. Moreover, an efficient and accurate method for calculating interface normal vectors and identifying interfaces is proposed. Based on the method, we introduce a series of techniques, including an improved interface force model, a particle displacement strategy, and a new particle penetration detection scheme, all of which significantly improve the interface continuity and the overall simulation accuracy of multiphase flows. Finally, the proposed multiphase SPH model is validated through several numerical examples, including two-dimensional static water, standing waves, dam break, oscillating multi-fluid, and wedge entry, as well as three-dimensional sphere entry. Comparative results with the traditional model indicate that the multiphase SPH model in this work ensures interface continuity and stability in long-period simulations, even under intense flow conditions. These results suggest that the smoothed-interface SPH multiphase model can eliminate non-physical gaps at interfaces, greatly enhancing interface continuity and stability, and highlighting its potential for accurate multiphase flow simulations.