With the integration of renewable energy-based sources and demand response initiatives, the distribution network has transformed into an active network with bidirectional flows. Network Reconfiguration (NR), i.e., changing network topology, is an alternative to minimize power loss in the distribution network with sectionalizing switches (normally closed) and tie-line switches (normally open). Due to the discrete nature of switches (on or off), the NR formulation is generally a mixed-integer NP-hard nonlinear problem. This paper proposes the first NR formulation for an unbalanced active distribution network with continuous variables to indicate switches’ statuses in NR while considering mutual coupling between line impedances. The obtained solution provides the optimal real power and voltage magnitude settings of dispatchable Distributed Generators (DGs) and network topology for the minimum active power loss in the network. The proposed formulation considers all practical aspects of the distribution network, i.e., mutual coupling, load unbalances, angular unbalance, and the absence of one or two phases in a line section, which, otherwise, have not been considered together in previous formulations. Further, a novel convex relaxation for bus voltage phase angles avoids explicit voltage recovery. Compared to prior formulations, numeric results for unbalanced radial distribution networks showcase the proposed formulation’s effectiveness.