This paper presents an improved compact model for TeraFETs employing a nonlinear transmission line approach to describe the non-uniform carrier density oscillations and electron inertia effects in the TeraFET channels. By calculating the equivalent components for each segment of the channel: conductance, capacitance, and inductance, based on the voltages at the segment's nodes, our model accommodates non-uniform variations along the channel. We validate the efficacy of this approach by comparing terahertz (THz) response simulations with experimental data and MOSA1, EKV TeraFET SPICE models, analytical theories, and Multiphysics simulations.