As the crucial interface of renewable energy integration, the grid-tied inverter is a complicated system with a multi-timescale feature, containing both fast dynamics and slow dynamics that determine the system stability. However, previous researches on stability analysis mainly focus on the slow dynamics without considering the impact of fast dynamics, which may bring to inaccurate stability prediction. In this paper, the impact of fast dynamics on stability is investigated for grid-tied inverter from a physical perspective. Considering the dynamics of the current control loop and network, a two degrees-of-freedom oscillator model is firstly established to extract the fast dynamics sepa-rately. The damping torque analysis is then applied to analyze the impact of the extracted fast dynamics on the damping and spring coefficients of slow dynamics. Moreover, based on the fast dynamic analysis, a novel reduced-order model is proposed with the consideration of the dominant characteristics of fast dynamics, which improves the model accuracy without increas-ing the complexity. Eventually, both numerical evaluations and experiments are performed to validate the proposed analysis method.