The structural dynamics of thin-walled parts vary as the material is removed during machining. This paper presents a new, computationally efficient reduced order dynamic substructuring method to predict the frequency response function (FRF) of the workpiece as the material is removed along the toolpath. The contribution of the removed mass to the dynamics of the workpiece is canceled by adding a fictitious substructure having the opposite dynamics of the removed material. The equations of motion of the workpiece are updated, and workpiece FRFs are evaluated by solving the hybrid set of assembled equations of motion in frequency domain as the tool removes the material between two consecutive dynamics update steps. The orders of the initial workpiece structure and the removed substructures are reduced using a model order reduction method with a newly introduced automatic master set selection criterion. The reduced order FRF update model is validated with peripheral milling tests and FRF measurements on a plate-shaped workpiece. It is shown that the proposed model provides ∼20 times faster FRF predictions than the full order finite element (FE) model.