The continuous growth of load demand has risen the current drawn from the source, voltage drop and power loss at distribution networks. In addition, the radial type configuration of distribution systems with improper successive feeders installation cause voltage drop. These problems have challenged the overall electric power supply system so far. This thesis presents the way how to improve the performance of distribution network by improving the voltage profile and reducing the power loss by integrating optimal DGs to Geferssa L-13 distribution feeder. Geferssa substation is located at Burayu town that has total of 14 distribution feeders. One of these feeders is Geferssa L-13 that is selected for the test system as it has high permanent power interruption rate, large loads and supply customers over long distance. This feeder has been modeled in the Matlab computational tool and its load flow analysis has been simulated using feed forward backward sweep method. This research uses Genetic Algorithm (GA) as selected optimization technique to determine the optimal size and location of DGs for power loss reduction and voltage profile improvement. GA optimization technique considers both active and reactive power losses. The algorithm‘s operation starts with fitness function identification and initial population creation. This means buses that have low bus voltage are selected as member of population. Then by crossover and mutation process mating operation takes place. At this step optimal DG size injection into the most sensitive buses with the consideration of constraints is done. According to optimal bus selection process bus 55 and 69 are selected for 2 DGs placement as the most sensitive buses. So, after optimal DGs integration into Geferssa L-13 simulation result shows the minimum bus voltage value above 0.9pu and could compensate the active power loss from 1.0784 MW to 0.440MW and reactive power loss from 0.511 MVA to 0.2085MVA. This means active power loss is reduced by 59% and reactive power loss by 59.2%. Key words: DG, GA, Power loss reduction, Voltage profile improvement