According to air-gap field-modulation theory, multiple field harmonics are responsible for high torque density of field modulation (FM) motors. However, abundant field harmonics will undoubtedly increase motor losses, especially iron loss and PM eddy-current loss. Therefore, a harmonic-analysis-based loss minimization (HLM) method incorporated into model predictive torque control (MPTC) for efficiency improvement of FM motors is proposed in this article. First, by analyzing the loss generation mechanism, a harmonic-based online loss calculation model is built to serve for loss minimization control. Then, the reference flux for MPTC can be derived from the proposed HLM method, which avoids complexity of equivalent resistance tuning and improves accuracy of loss calculation compared to the conventional model-based loss minimization method which lacks attention on the harmonic-based loss analysis. Consequently, the HLM-MPTC strategy is finally determined and then applied in a flux-concentrating field-modulation permanent-magnet prototype to verify its validity. The experimental results evidence that the proposed HLM-MPTC can effectively achieve loss reduction and efficiency improvement.