The Lamb wave time reversal method has widely been investigated as a baseline-free damage detection technique for structural health monitoring. Due to the mode tuning effects from the transducer-wave interactions, even for a pristine wave path, the reconstructed signal waveform may differ much from the original excitation waveform. Consequently, it becomes difficult to distinguish the differences between undamaged and damaged wave paths. This article presents an enhanced Lamb wave virtual time reversal (VTR) algorithm with transducer transfer function compensation to eliminate the transducer influence for dispersive, multimodal Lamb waves. This VTR procedure builds upon a complete 2D analytical model for Lamb wave generation, propagation, and reception. The analytical solution shows that, with the transducer transfer function compensation, a perfect reconstruction of the original excitation waveform can be achieved for both symmetric and antisymmetric Lamb modes. In addition, finite element modeling and experimental validations are further performed to verify the enhanced time reversal procedure. Finally, a time reversal tomography experiment is conducted with a piezoelectric transducer array for structural damage imaging. The enhanced VTR method can achieve more accurate and robust damage imaging results. The paper finishes with discussion, concluding remarks, and suggestions for future work.