The operation and structure of distribution system are changing with the integration of Distributed Generation (DG) units, where these units may have effect on power losses, stability, voltage profile, power quality and other quantities. Therefore the optimum location, size and number of DG units are necessary to avoid the negative impacts on electric power system. In this work, the Particle Swarm Optimization (PSO) technique is used to find the optimal number and locations of DG in order to minimize the active power losses. The thermal limit of transmission lines and transformers was studied to detect the lines or transformers which exceed the limit in order to process it. The voltage stability of distribution network has been investigated, using L index method.Â