As a new algorithm to achieve sparse aperture inverse synthetic aperture radar (SA‐ISAR) imaging, the alternating direction method of multipliers (ADMM) suffers from selection of model parameters and the inability to discriminate the target and non‐target components. Therefore, an improved ADMM (I‐ADMM) algorithm is proposed to solve these problems. First, the particle swarm optimisation (PSO) algorithm is utilised to obtain the optimal model parameters. Aiming to adequately preserve the target's shape information in the ISAR image, a modified image entropy (IE) is proposed to be the objective function of the PSO. Then, a new regularisation function is obtained from the ADMM based ISAR image. The proposed algorithm can enhance the target components and suppress the non‐target components by utilising the regularisation function. Finally, results based on the simulated and measured data show that the proposed I‐ADMM algorithm not only achieves at least 10% improvement in IE but also greatly improves the image quality as visually compared with the traditional ADMM algorithm which validates the effectiveness and superiority of the proposed algorithm.