Distribution Matching Distillation (DMD) distills score-based generative models into efficient one-step generators, without requiring a one-to-one correspondence with the sampling trajectories of their teachers. Yet, the limited capacity of one-step distilled models compromises generative diversity and degrades performance in complex generative tasks, e.g., generating intricate object motions in text-to-video task. Directly extending DMD to multi-step distillation increases memory usage and computational depth, leading to instability and reduced efficiency. While prior works propose stochastic gradient truncation as a potential solution, we observe that it substantially reduces the generative diversity in text-to-image generation and slows motion dynamics in video generation, reducing performance to the level of one-step models. To address these limitations, we propose Phased DMD, a multi-step distillation framework that bridges the idea of phase-wise distillation with Mixture-of-Experts (MoE), reducing learning difficulty while enhancing model capacity. Phased DMD incorporates two key ideas: progressive distribution matching and score matching within subintervals. First, our model divides the SNR range into subintervals, progressively refining the model to higher SNR levels, to better capture complex distributions. Next, to ensure accurate training within each subinterval, we derive rigorous mathematical formulations for the objective. We validate Phased DMD by distilling state-of-the-art image and video generation models, including Qwen-Image-20B and Wan2.2-28B. Experiments demonstrate that Phased DMD enhances motion dynamics, improves visual fidelity in video generation, and increases output diversity in image generation. Our code and models are available at https://x-niper.github.io/projects/Phased-DMD/.