Abstract: In order to reduce active power loss in distribution system, improve voltage quality and keep voltage stable, the improved model and the optimal algorithm were proposed for comprehensive optimizing feeder reconfiguration and capacitor allocation. Taking the minimum network loss as objective function, the load flow was calculated by backwardforward sweep method. The method of binary particle swarm was improved to solve the transferring difficulty of iteration information to the next round with inaccurate positions updating. The network reconfiguration and the capacitor placement were optimized simultaneously in distribution networks. The algorithm was tested on IEEE 16bus system and simulated in MATLAB R2010 to compare 5 different optimizing solutions. The simulation results show that the modified binary particle swarm method can obtain the best status of network by updating pbest and gbest in each iteration. The minimum energy loss and the improved voltage profile are obtained by considering reconfiguration and capacitor allocation synchronously.