ABSTRACT In this study, we modify the semi-analytic model galacticus in order to accurately reproduce the observed properties of dwarf galaxies in the Milky Way. We find that reproducing observational determinations of the halo occupation fraction and mass–metallicity relation for dwarf galaxies requires us to include H2 cooling, an updated ultraviolet background radiation model, and to introduce a model for the metal content of the intergalactic medium. By fine-tuning various model parameters and incorporating empirical constraints, we have tailored the model to match the statistical properties of Milky Way dwarf galaxies, such as their luminosity function and size–mass relation. We have validated our modified semi-analytic framework by undertaking a comparative analysis of the resulting galaxy–halo connection. We predict a total of $300 ^{+75} _{-99}$ satellites with an absolute V-band magnitude (MV) less than 0 within 300 kpc from our Milky Way analogues. The fraction of subhaloes that host a galaxy at least this bright drops to 50 per cent by a halo peak mass of ∼8.9 × 107 M⊙, consistent with the occupation fraction inferred from the latest observations of Milky Way satellite population.