Abstract Coherent plane-wave compounding (CPWC) has gained significant traction in medical ultrasound imaging. The coherence factor (CF) weighting algorithm, a classical adaptive beamforming strategy, aims to enhance the CPWC imaging lateral resolution, but it also noticeably compromises the speckle patterns, particularly.at a low signal-to-noise ratio (SNR). Delay multiply and sum (DMAS) has been proposed to reduce side lobes. However, the reconstructed image quality with DMAS is limited in terms of resolution and speckle level. In the present study, an improved subarray coherence factor (ISCF) algorithm is introduced by combining CF with DMAS strategies, aiming to improve the contrast and resolution while preserving the speckle level. The performance of the proposed algorithm is evaluated using simulation and phantom datasets. Results indicate that the resolution and the contrast of ISCF can be improved by 41.6% and 79.4%, respectively; compared with delay and sum (DAS) algorithm. Additionally, the resolution and the speckle level of ISCF can be improved by 10.6% and 35.7% compared with CF algorithm, respectively. The proposed ISCF algorithm outperforms CF in terms of resolution, contrast, and speckle preservation.