Abstract. This paper proposes a reconfiguration technique based on MPSO Algorithm that aims at achieving power loss minimization, minimum voltage deviation and better load balance factor of radial distribution networks in presence of distributed generators. A 33-bus distribution system was selected for optimizing the configuration and to demonstrate the effectiveness of the proposed technique for solving the optimal switching operation of distribution systems with DG units. The simulation results have shown that lower system loss and better load balancing will be achieved at a distribution system with distributed generation (DG) compared to a system without DG. In addition, the simulation results confirm the success of the proposed method and show significant impact in reducing losses and improving system performance.Keywords: Distributed Generation (DG), Distribution system reconfiguration, Fuzzy Interaction, Load-balancing index improvement, MPSO Algorithm, Power loss minimization.