The interface algorithm is critical for accuracy of the real-time integration simulation system of renewable energy and the power grid. To improve the overall performance of the existing interface algorithms, this paper proposes an optimized interface algorithm based on the auxiliary damping impedance method interface current feedback. We explain in detail the implementation principle of the new interface algorithm and the calculation method of impedance matching and also provide a parallel timing control logic. Using the new interface algorithm, we derive equations for voltage and current of the digital simulation system side and the device under test side and also compare it with the naturally coupled system without interface delay. Finally, we verify the accuracy of the new interface algorithm via establishing a complete model of the real-time integration simulation system with a wind turbine and the power grid. The results show that the accuracy can be improved 95% in the digital simulation system side and 17% in the device under test side by using the proposed interface algorithm in this paper.