The rapid integration of distributed energy resources (DERs) such as photovoltaics (PV), wind turbines, and energy storage systems has transformed modern power systems, with hosting capacity optimization emerging as a critical challenge. This paper presents a novel Hybrid Proximal Policy Optimization-Wasserstein Generative Adversarial Network (PPO-WGAN) framework designed to address the temporal-spatial complexities and uncertainties inherent in renewable-integrated distribution networks. The proposed method combines Proximal Policy Optimization (PPO) for sequential decision-making with Wasserstein Generative Adversarial Networks (WGAN) for high-quality scenario generation, enabling robust hosting capacity enhancement and operational efficiency. Simulation results demonstrate a hosting capacity improvement of up to 128.6% in high-penetration scenarios (90% renewable), with average operational cost reductions of 22%. Voltage deviations are minimized to within ±5% of nominal levels, while energy losses are reduced by 18%. Scenario quality, evaluated using the Wasserstein metric, achieved convergence with an average score of 0.95 after 80 iterations, highlighting the WGAN’s ability to generate realistic and diverse scenarios. This study advances the state of the art in distribution network optimization by integrating machine learning techniques with robust mathematical modeling. The PPO-WGAN framework enhances scalability, ensures grid stability, and promotes efficient renewable integration, providing a robust foundation for future applications in modern power systems.