Introduction: Due to a variety of secondary tasks performed by drivers, distracted driving has become a critical concern. At 50 mph, sending/reading a text for 5 seconds is equivalent to driving the length of a football field (360 ft) with eyes closed. A fundamental understanding of how distractions lead to crashes is needed to develop appropriate countermeasure strategies. A key question is whether distraction increases driving instability, which then further contributes to safety-critical events (SCEs). Methods: By harnessing newly available microscopic driving data and using the safe systems approach, a subsample of naturalistic driving study data were analyzed, collected through the second strategic highway research program. Rigorous path analysis (including Tobit and Ordered Probit regressions) is used to jointly model the instability in driving (using coefficient of variation of speed) and event outcomes (including baseline, near-crash, and crash). The marginal effects from the two models are used to compute direct, indirect, and total effects of distraction duration on SCEs. Results: Results indicate that a longer duration of distraction was positively but non-linearly associated with higher driving instability and higher chances of SCEs. Where, the chance of a crash and near-crash was higher by 34% and 40%, respectively, with a unit increase in driving instability. Based on the results, the chance of both SCEs significantly increases non-linearly with an increase in distraction duration beyond 3 seconds. For instance, the chance of a crash is 16% for a driver distracted for 3 seconds, which increases to 29% if a driver is distracted for 10 seconds. Conclusions and Practical Applications: Using path analysis, the total effects of distraction duration on SCEs are even higher when its indirect effects on SCEs through driving instability are considered. Potential practical implications including traditional countermeasures (changes in roadway environments) and vehicle technologies are discussed in the paper. & COPY; 2023 National Safety Council and Elsevier Ltd. All rights reserved.