The aim of this paper is to increase the performance of hysteresis compensation for Shape Memory Alloy (SMA) actuators by using inverse Preisach model in closed-loop control system. This is used to reduce hysteresis effects and improve accuracy for the displacement of SMA actuators. Firstly, hysteresis is identified by numerical Preisach model implementation. The geometrical interpretation from first order transition curves is used for hysteresis modeling. Secondly, the inverse Preisach model is formulated and incorporated in closed-loop PID control system in order to obtain desired current-to-displacement relationship with hysteresis reducing. The experimental results for hysteresis compensation by using this method are also shown in this paper.