The loads in distribution network are heterogeneous in nature and the fast growing electrical demand is due to manufacturing sector and domestic needs. The impact of load demand, affects the distribution network which leads to power interruptions and failures in the distribution system. To minimize theses problems, the decentralized generation by using distributed generators (DGs) is preferred. For optimal operation of distribution network, it is required to obtain optimal size and location of DGs. In this paper particle swarm optimization technique is implemented by considering economical and technical factors. The optimization technique is implemented on standard IEEE buses.