Abstract: Last few years, a number of factors have led to an increased interest in Distributed Generation (DG) scheme because placement of DG is the most effective method in reducing the power loss of the distribution networks to serve remote loads. Placement of shunt capacitors improves voltage profile but unable to serve remote load as it can provide only reactive power. So, combination of both gives productive solution. In this study, Differential Evaluation Algorithm (DEA) is utilized to find optimal location and size of both DGs and Shunt capacitors in radial distribution systems with an objective of minimizing line losses subjected to bus voltage limits. The performance of the proposed algorithm is implemented on Indian Electricity Board benchmark 25 Bus distribution system.