In this paper, an improved direct torque control (DTC) method for sensorless matrix converter drives is proposed which enables to minimize torque ripple, to obtain unity input power factor, and to achieve good sensorless speed-control performance in the low speed operation, while maintaining constant switching frequency and fast torque dynamics. It is possible to combine the advantages of matrix converters with the advantages of the DTC strategy using space vector modulation and a flux deadbeat controller. To overcome the phase current distortion by the non-linearity of a matrix converter drive, the simple non-linearity compensation method using PQR power theory are presented in the proposed scheme. Experimental results are shown to illustrate the feasibility of the proposed strategy.