Gram-Schmidt (GS) orthogonal normalization is a fast and efficient two-frame fringe phase demodulation method. However, the precision of the GS method is limited due to the residual background terms and noise, as well as several approximation operations in the GS method. To obtain a phase map with higher accuracy, we propose an algorithm combining GS orthogonal normalization and least squares iterative (LSI) phase shift algorithm (GS&LSI). In our method, the phase was first obtained using GS method, and then a refinement operation using LSI was adopted to get the final wrapped phase map. Because of the LSI process, the demodulation result is greatly improved in many cases. Simulation and experimental result are presented to validate the potential of the proposed method.