The precision of particle size distribution (PSD) is a key indicator to evaluate inversion algorithms. In the light scattering particle sizing technology, constructed on the inversion method of the traditional non-negative Philips-Twomey (NNPT) algorithm, an iterative NNPT (INNPT) algorithm was proposed in this paper, applied for the inversion of PSD. In simulations, the inversion accuracy performance of NNPT and INNPT algorithms were compared and analyzed by using different widths of PSD that conform to Johnson’s SB unimodal and bimodal functions. A small angle forward scattering method of PSD measurement system using Charge Coupled Device (CCD) as a photodetector was constructed and the national standard particles were tested. Both the results of simulations and experiments show that the inverse accuracy and stability of INNPT algorithm are superior to NNPT algorithm especially in the conditions of narrow distribution.