Magnetic particle imaging (MPI) is a medical imaging technology suitable for noninvasive diagnostics. However, in conventional image reconstruction methods, due to either noise or the reconstruction method itself, the reconstructed image quality degrades. In order to suppress this problem, we improved the time-correlation MPI method that we had previously proposed. Specifically, this method iteratively corrects image blurring by reducing the difference between the observed signals from magnetic nanoparticles and the analytically calculated waveforms for the reconstructed image generated with the time-correlation method. Using numerical simulation, we evaluate the effectiveness of this method in conjunction with the continuous scan technique, which makes fast data acquisition possible.Index Terms-Image reconstruction, iterative algorithm, magnetic particle imaging (MPI), molecular imaging.