A distribution system is known as an interface between the central power system and its consumers. DGs are defined as small scale generation units that are connected near to customer load centres. DGs have the potential of altering power flows, system voltages, and even the performance of the integrated network. With the principle of minimizing line losses in the power systems, it is remarkably imperative to define the optimal size and location of local generations. This paper proposes Genetic Algorithm (GA) for optimal placement and sizing of distributed generation (DG) in radial distribution system by minimizing the real power loss and thus improving the voltage shape. The developed algorithm is tested on 33-bus radial distribution system. The proposed method has outperformed than the other methods in terms of the quality of solution and computational competence.