This paper presents an algorithm for solving the multi-objective reactive power dispatch problem in a power system. Modal analysis of the system is used for static voltage stability assessment. Loss minimization and maximization of voltage stability margin are taken as the objectives. Generator terminal voltages, reactive power generation of the capacitor banks and tap changing transformer setting are taken as the optimization variables. Evolutionary algorithm and Swarm Intelligence algorithm (EA, SI), a part of Bio inspired optimization algorithm, have been widely used to solve numerous optimization problem in various science and engineering domains. Bacterial Foraging Optimization Algorithm (BFOA) has recently emerged as a very powerful technique for real parameter optimization. In order to overcome the delay in optimization and to further enhance the performance of BFO, this paper proposed a new hybrid algorithm combining the features of BFOA and Particle Swarm Optimization (PSO) called Adaptive bacterial foraging oriented particle swarm optimization (ABF-PSO) for solving reactive power dispatch problem .The simulation results demonstrate good performance of the ABF-PSO in solving an optimal reactive power dispatch problem. In order to evaluate the proposed algorithm, it has been tested on IEEE 30 bus system and compared to other algorithms reported those before in literature. Results show that (ABF-PSO) is more efficient than others for solution of single-objective ORPD problem.