Active dampers are on the verge of appearing in commercial machines as devices that assist the avoidance of machine tool chatter. The adjustment of control parameters in these devices is mostly guided by models that do not consider the dynamics within the control loop of active damper. Therefore, these models neglect the dynamics of actuation, measurement, and filtering, which can result in inaccurate stability predictions that hinder the efficient tuning of active dampers. To formulate a more realistic model for milling processes assisted by active damping, this paper derives a novel mathematical model that takes into account the internal dynamics of the actuator, measuring device, and discrete filtering. This study shows that accurate stability prediction requires the incorporation of actuator and filter dynamics into the model, especially at high spindle speeds and large feedback gains.