In this paper, a new and completely distributed algorithm for integrated volt/var control is presented. The algorithm is based on a multiagent system, which provides distributed intelligence to smart grid. The voltage regulator and shunt capacitor controlled by intelligent agents collaborate to determine the optimal setting for the entire system. The optimization objectives include maintaining the system voltage profile within a specified range, minimizing system loss, and reducing the switching of shunt capacitors. To achieve these objectives, an updated agentbased distributed power flow solver is used. The proposed algorithm is validated through the modified IEEE 34 node test feeder.Index Terms-Distribution automation (DA), multiagent system (MAS), shunt capacitor, smart grid, volt/var control (VVC), voltage regulator.