An increasing number of power-electronic-based distributed generation systems and loads generate not only characteristic harmonics but also unexpected harmonics. Several methods, such as impedance-based analysis, which are derived from the conventional average model, are introduced to perform research about the harmonic interaction. However, it is found that the linear-time-invariant-based model analysis makes it difficult to analyze these phenomena because of the time-varying properties of the power-electronic-based systems. This paper investigates a grid-connected converter by using the harmonic state-space (HSS) small-signal model, which is based on a linear time-varying periodically theory. The proposed model can include the switching behavior of the model, where it makes the model possible to analyze how harmonics are transferred into both the ac-side and dc-side circuits. Furthermore, a harmonic matrix of the grid-connected converter is developed to analyze the harmonic interaction at the steady-state behavior. Besides, the frequency-domain results are compared with time-domain simulation results by using the HSS modeling to verify the theoretical analysis. Experimental results are finally discussed to verify the proposed model and study.