In this paper, Improved Intelligent Water Drop (IIW) algorithm has been proposed to solve the optimal reactive power problem. In this work firefly and water drop algorithm has been combined to improve the exploration & exploitation. Fire fly algorithm imitates the firefly light flashing behaviour is an astonishing signal in the sky, usually found in tropical and temperate regions. Water drop algorithm contains a few necessary elements of natural water drops and action and reaction that occur between river bed & the water drops that flow within. Proposed Improved Intelligent Water Drop (IIW) algorithm has been tested in Standard IEEE 57,118 bus systems & real power loss has been comparatively reduced with voltage profiles are within the limits.