Proper placement of Distributed Generation(DG) in the distribution network is a veryvital and challenging task. If the DGs are not properly placed inthe distribution network, it may lead to increase of electric powerlosses instead of reducing the same. So, the placement of DG atproper strategic location is a very important task. At the sametime, optimum sizing of DG plays anessential role to reduce the network losses. For that reason, finding the optimum location and obtaining the appropriate size of DG have become an important topic of research. The proposed Adaptive Particle Swarm Optimization (APSO) technique gives better results for all the test systems. Proposed APSO for voltage stability index will provide better locations for distributed generation sources and better management of real and reactive power deployment. Experimental results have been carried out for IEEE 33 radial bus systems in which three different locations are selected from 37 lines in 33 bus system. When the locations are optimized; new configuration gives 70.36 % less power loss than the older configuration.