AbstractTo counter different technical challenges with large‐scale renewable energy sources (RESs) integration, distribution systems (DS) are recently undergoing the transition process from passive to active DS (ADS), which has introduced further complications for system planning. In such context, this study proposes an ADS expansion planning (ADSEP) framework in coordination with active system management (ASM) schemes. A multi‐stage ADSEP model, unlike the traditional single‐stage model, is designed where the planning horizon is divided into several stages to make the planning investments gradually. For proper coordination of different planning alternatives, an effective bi‐level model is formulated based on upper‐level and lower‐level planning. In accordance with recent energy market scenario, RESs are assumed to be invested by RES Investor (RESI) and to ensure the desired financial benefits of RESI, the Distribution Company (DISCOM) offers bus‐wise contract price (BCP) for purchasing RESs generated energy. Moreover, a computationally efficient 2 m point estimate method (PEM) is applied to model the uncertainties of load and RESs. The proposed planning framework with multiple objectives is solved using the multi‐objective PSO technique considering 69‐bus test system.