Bleeding simulation using traditional Smoothed Particle Hydrodynamics (SPH) methods cannot satisfy well the visual realism requirement in virtual surgery. An improved real-time SPH method is developed for bleeding simulation in this paper. In order to improve the degree of visual realism, this model incorporates and refines more physical properties of blood such as weakly compressive pressure, stabilized forces on the boundary and improved quality of bleeding surface. The novelties of this work lie in two aspects. First, the stability of the model is enhanced by considering the impact of neighboring density on compressive pressure and using modified supporting area for boundary particles. Second, the surface tension is able to change according to the forms of blood. The breakage of the tumor body of aneurysm is simulated. Compared with the traditional SPH method, the edge of the blood-drops and the bleeding boundary on the tissue in the proposed method are clearer and smoother. The simulation results show that the developed method improves the dynamic effect on bleeding simulation.