This study proposes a small-signal model and control design for a two-stage DC-DC-AC converter to investigate its dynamic characteristics in relation to battery energy storage system. When the circuit analysis of the two-stage DC-DC-AC converter is attempted simultaneously, the mathematical procedure of deriving the dynamic equation is complex and difficult. The main idea of modeling the two-stage DC-DC-AC converter states that this topology is separated into a bidirectional DC-DC converter and a single-phase inverter with an equivalent current source corresponding to that of the inverter or converter. The dynamic equations for the separated converter and inverter are then derived using the state-space averaging technique. The procedures of building the small-signal model of the two-stage DC-DC-AC converter are described in detail. Based on the derived small-signal model, the individual controllers are designed through a frequency-domain analysis. The simulation and experimental results verify the validity of the proposed modeling approach and controller design.