This paper presents a new method to solve the network reconfiguration problem in the presence of distributed generation (DG) with an objective of minimizing real power loss and improving voltage profile in distribution system. A meta heuristic Harmony Search Algorithm (HSA) is used to simultaneously reconfigure and identify the optimal locations for installation of DG units in a distribution network. Sensitivity analysis is used to identify optimal locations for installation of DG units. Different scenarios of DG placement and reconfiguration of network are considered to study the performance of the proposed method. The constraints of voltage and branch current carrying capacity are included in the uation of the objective function. The method has been tested on 33-bus and 69-bus radial distribution systems at three different load levels to demonstrate the performance and effectiveness of the proposed method. The results obtained are encouraging. (2014-11-17