This paper presents American Buffalo algorithm (AB) to solve reactive power dispatch problem. AB algorithm imitates the American buffalo behaviour and their exploration techniques they utilize in the American forests and grasslands. The American buffalo employs its special intellectual, cooperative and independent approach in its exploration for the optimal path to reach the grassland. This endows it to get results faster than some other exploration agents. Proposed AB algorithm has been verified in standard IEEE 30 bus test system. Simulation results show evidently about the improved performance of the proposed algorithm in reducing the real power loss with control variables within the limits.