The subsynchronous oscillations (SSOs) related to renewable generation seriously affect the stability and safety of the power systems. To realize the dynamic monitoring of SSOs by utilizing the high computational efficiency and noise-resilient features of the matrix pencil method (MPM), this paper proposes an improved MPM-based parameter identification with synchrophasors. The MPM is enhanced by the angular frequency fitting equations based on the characteristic polynomial coefficients of the matrix pencil to ensure the accuracy of the identified parameters, since the existing eigenvalue solution of the MPM ignores the angular frequency conjugation constraints of the two fundamental modes and two oscillation modes. Then, the identification and recovery of bad data are proposed by utilizing the difference in temporal continuity of the synchrophasors before and after noise reduction. The proposed parameter identification is verified with synthetic, simulated, and actual measured phase measurement unit (PMU) data. Compared with the existing MPM, the improved MPM achieves better accuracy for parameter identification of each component in SSOs, better real-time performance, and significantly reduces the effect of bad data.