Integration of renewable distributed generation (DG) into urban distribution networks has emerged as a vital strategy for enhancing power system performance and sustainability. This thesis focuses on the performance enhancement of the Jigjiga City distribution network by determining the optimal placement and sizing of renewable DG units. The study aims to address the challenges of voltage drop and power losses issues in the existing distribution network. Optimal allocation and sizing of DG can be determined by applying particle swarm optimization (PSO) for multi-objective function using MATLAB software. By incorporating with technical criteria to identify the most effective DG deployment strategies, multi-objective optimization algorithms are utilized to evaluate various scenarios, ensuring an optimal performance improvement. The thesis also includes a comprehensive simulation of the distribution network under different DG integration configurations, assessing key performance indicators such as voltage profile and power loss reduction. The results of this thesis indicate substantial improvements in the network's operational performance, demonstrating the viability and benefits of renewable DG integration. The findings provide critical insights and practical guidelines for utility companies, policymakers, and stakeholders involved in the development of sustainable energy solutions for urban areas. The minimum voltage is improved from 0.9116p.u to 0.980p.u and the real power loss reduced by 82.7% as shown figure 4.5 and 4.6. Keywords: Voltage Profile, PSO, MATLAB software, Renewable distributed generation, optimal placement, optimal sizing, Distribution network, Power loss reduction, Multi-objective optimization.