In this paper we propose a method for standard cell placement with support for dual supply voltages, aiming to reduce total power under timing constraints and to implement voltage islands with minimal overheads. The method begins with timing and power driven coarse placement, followed by a few iterations between voltage assignment and placement refinement to generate voltage islands. Several techniques, including timing and power driven net weighting, seed growth based voltage assignment, and soft clustering strategy for placement refinements are employed in our implementation. Experimental results on a set of MCNC benchmarks show that our approach is able to produce feasible placement for dual-Vdd designs and significantly reduce total power with a wirelength increase within 14% compared to a power and timing driven placer without voltage islands.