The final step in getting electricity to consumer is the distribution system. The transmission system's power is delivered to consumers via this system network. Insufficient power quality for bus voltage, a flow of real power, and reactive power are present in the radial distribution system. In an electrical power system, the voltage decreases due to reduced reactive power, the voltage decreases. Thus, it is not possible to push the power demand to loads through the lines and has an adverse impact on system stability. Many attempts have been made to improve these issues. This thesis was done by using SVC in Jijiga distribution system feeder 4 to reduce power loss and improve existing voltage profile. SVC is shunt FACTs devices that is used to improve the performance of distribution system. To maintain the rated voltage within acceptable limit at load end, low rated static VAR compensators (SVC) was installed at buses operated below specified limit. This research takes Optimal Capacitor Placement (OCP) to determine under operated buses in the system and rating of SVC in Electrical Transient Analyzer Program (ETAP). Modeling and Simulation of the distribution network with and without SVC had been developed in the Electrical Transient Analyzer Program (ETAP) environment. Power flow analysis of Jijiga distribution network was performed to calculate the various values of voltage and power flow in the distribution system. Also, Load flow analysis of Jijiga distribution network feeder four including static var compensator (SVC) in ETAP was performed to keep voltage profile within ±10% of the rated voltage. Before compensation, the simulation result was observed and the minimum and maximum bus voltages value were 89.311 % (bus 95) and 93.190% (bus2) respectively and which were improved to 94.926% (bus95) and 97.944% (bus 2) after compensation, respectively. Hence, When SVC was connected to the most weak buses, minimum and maximum bus voltage value were 90.202% (bus 84) and 97.944% (bus 2), respectively. The voltage drop before and after SVC placement was obtained as 0.5612pu and 0.4862pu respectively. Hence, the total voltage profile improvement measured based on the reduction in total voltage deviation (TVD) of Jijiga distribution network was obtained as 13.36%. Also, simulation result before compensation of SVC shows total losses of active and reactive power were 557.7KW and 876.2KVAr. After SVC was connected to the weakest buses, the active and reactive power loss became 293.7KW and 370.5KVAr. Hence, the loss saving was obtained as 264KW, with the total SVC size of 4.9MVAr capacitive and 9.8MVAr inductive. Keywords: - Bus Voltage Improvement. ETAP, SVC, Power Flow Analysis, Radial Distribution.