Galactic dynamics is the foundation for simulating galactic structure and for solving other problems. However, the traditional dynamic equations include some unreasonable assumptions and are therefore scientifically invalid. In this paper, by introducing the following three working assumptions, we established the galactic dynamics of high precision and convenient formalism. 1. In the research of large-scale structure, the retarded potential of the gravitational field should be taken into account, and the weak field and low velocity approximation of Einstein’s field equation should be adopted. 2. The stars in a fully developed galaxy should be zero-pressure and inviscid fluid, and the equation of motion is different from that of ordinary continuum mechanics. Stars move along geodesics. 3. The structure of the galaxy is only related to the total mass density distribution. The equation of state of dark halo is different from that of ordinary luminous interstellar matter, so their trajectories are also very different. In a galaxy, the dark halo and the ordinary matter are automatically separated. The total mass density distribution can be presupposed according to the observation data, and then it can be determined by comparing the solution of the equations with the observed data. These assumptions and treatments are supported by theory and observation. The variables of the equations of simplified galactic dynamics are separated from each other, and the equations are well-posed and can be solved according to a definite procedure. The solution explains the Tully–Fisher relation. Therefore, this simplified dynamic equation system provides a more reasonable and practical framework for the further study of galactic structure, and can solve many practical problems. In addition, it is closely related to the study of dark matter halo in galaxy.