Radial spin echo diffusion imaging allows motion-robust imaging of tissues with very low T2 values like articular cartilage with high spatial resolution and signal-to-noise ratio (SNR). However, in vivo measurements are challenging due to the significantly slower data acquisition speed of spin-echo sequences and the less efficient k-space coverage of radial sampling, which raises the demand for accelerated protocols by means of undersampling. This work introduces a new reconstruction approach for undersampled DTI. A model-based reconstruction implicitly exploits redundancies in the diffusion weighted images by reducing the number of unknowns in the optimization problem and compressed sensing is performed directly in the target quantitative domain by imposing a Total Variation (TV) constraint on the elements of the diffusion tensor. Experiments were performed for an anisotropic phantom and the knee and brain of healthy volunteers (3 and 2 volunteers, respectively). Evaluation of the new approach was conducted by comparing the results to reconstructions performed with gridding, combined parallel imaging and compressed sensing, and a recently proposed model-based approach. The experiments demonstrated improvement in terms of reduction of noise and streaking artifacts in the quantitative parameter maps as well as a reduction of angular dispersion of the primary eigenvector when using the proposed method, without introducing systematic errors into the maps. This may enable an essential reduction of the acquisition time in radial spin echo diffusion tensor imaging without degrading parameter quantification and/or SNR.