This paper proposes a hybrid methodology to identify the optimal location and sizing for distribution static compensator (DSTATCOM) placement as a distribution flexible ac transmission system (DFACT) device in a distribution system, by using fuzzy and Penguins search optimization algorithm (PeSOA). The main purpose is to reduce the power loss and to improve the voltage profile of distribution networks. The PeSOA is meta-heauristic search method inspired from the hunting strategy of penguins. Here fuzzy is used for finding the optimal location and PeSOA is used to find the size of DSTATCOM in radial distribution networks. The feasibility and satisfying performance of the proposed method is examined on the IEEE 33-bus and 69-bus distribution system.