Simplification orderings, like the recursive path ordering and the improved recursive decomposition ordering, are widely used for proving the termination property of term rewriting systems. The improved recursive decomposition ordering is known as the most powerful simplification ordering. Recently Jouannaud and Rubio extended the recursive path ordering to higher-order rewrite systems by introducing an ordering on type structure. In this paper we extend the improved recursive decomposition ordering for proving termination of higher-order rewrite systems. The key idea of our ordering is a new concept of pseudo-terminal occurrences.