This paper establishes an improved NDIF method for the eigenvalue extraction of two-dimensional acoustic cavities with arbitrary shapes. The NDIF method, which was introduced by the authors in 1999, gives highly accurate eigenvalues despite employing a small number of nodes. However, it needs the inefficient procedure of calculating the singularity of a system matrix in the frequency range of interest for extracting eigenvalues and mode shapes. The paper proposes a practical approach for overcoming the inefficient procedure by making the final system matrix equation of the NDIF method into a form of algebraic eigenvalue problem. The solution quality of the proposed method is investigated by obtaining the eigenvalues and mode shapes of a circular, a rectangular, and an arbitrarily shaped cavity.