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In this paper, we investigate the performance of energy harvesting two-way relay systems in the presence of transceiver hardware impairments (HIs). In order to improve the reliability of the communication links, we employ a three-phase hybrid decode-amplify-forward (HDAF) based relaying scheme. In the considered system, the battery-enabled relay node harvests energy from the ambient radio-frequency (RF) signals using a time switching approach. We demonstrate that HIs pose detrimental impact on the performance of system by invoking ceiling effects, primarily when high target rates are anticipated. Consequently, we propose an improved HDAF (IHDAF) relaying scheme which makes the efficient use of available degrees of freedom and thereby enhances the system performance significantly. As such, the IHDAF relaying may induce slightly higher complexity due to involvement of the limited feedback …