Grey Wolf Optimizer (GWO) has been known as one of the most popular and powerful metaheuristic search algorithms. It has great advantages such as simplicity, accuracy, and good convergence rate, but its performance degrades when the global optimum is not zero. To address these issues, in this paper, a new formulation is introduced to change its searching and hunting mechanisms, while the updating structure of wolves is also modified. With these changes, a proper compromise is achieved between exploitation and exploration. Therefore, the proposed algorithm, called Fast-Dynamic GWO (FDGWO), is more accurate with a faster convergence rate compared to GWO. Thirty-eight typical benchmark functions are optimized with FDGWO and compared with a set of efficient metaheuristic search algorithms. The Wilcoxon rank-sum test is used to statistically assess the results. With an overall efficacy of 84.2%, FDGWO is the most effective among competing algorithms. Then, the performance of FDGWO for ten real-world constrained engineering problems is compared with some highly accurate recent algorithms such as BP-ϵMAg-ES and COLSHADE. The results show that while FDGWO performs almost as accurate as these algorithms, but its computational complexity is quite less. Next, a new hybrid method based on FDGWO is proposed for model order reduction (MOR) of bilinear systems. First, the order of reduced system is determined via an iterative approach based on H2 norm of the error system. The unknown parameters of reduced model are then determined by minimizing a multi-objective fitness function aiming to match the multi-moments of original and reduced bilinear systems. Some stability constraints based on the Volterra series expansion of the states of the bilinear system are added to the optimization problem, which is solved by FDGWO algorithm. Finally, two bilinear test systems are reduced by the proposed hybrid method and compared with the most common bilinear MOR methods.