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In this work we propose an efficient and accurate multi-scale optical simulation algorithm by applying a numerical version of slowly varying envelope approximation in FEM. Specifically, we employ the fast iterative method to quickly compute the phase distribution of the electric field within the computational domain and construct a novel multi-scale basis function that combines the conventional polynomial basis function together with numerically resolved phase information of optical waves. Utilizing this multi-scale basis function, the finite element method can significantly reduce the degrees of freedom required for the solution while maintaining computational accuracy, thereby improving computational efficiency. Without loss of generality, we illustrate our approach via simulating the examples of lens groups and gradient-index lenses, accompanied with performance benchmark against the standard finite element method. The results demonstrate that the proposed method achieves consistent results with the standard finite element method but with a computational speed improved by an order of magnitude.