Small-signal modeling and controller design methodology are proposed to improve the dynamics and stability of a DC-DC dual active bridge (DAB) converter. The state-space average method has a limitation when applied to the DAB converter because its state variables are nonlinear and have zero average values in a switching period. Therefore, the small-signal model and the frequency response of the DAB converter are derived and analyzed using a generalized average method instead of conventional modeling methods. The design methodology of a lead-lag controller instead of the conventional proportional-integral controller is also proposed using the derived small-signal model. The accuracy and performance of the proposed small-signal model and controller are verified by simulation and experimental results with a 500 W prototype DAB converter.