In recent years due to the high penetration of distributed generation (DG) in the network, the importance of distribution loss allocation (LA) has increased. Evaluation and allocation of the system losses to suppliers and consumers in presence of DGs are key issues that to be addressed. This paper presents a new algorithm for LA in distribution systems including DG units. This algorithm is based on the injected power into network lines and considers each line's active and reactive power flows for LA. At first, regardless of the suppliers, the contribution of each load in the loss of each line is obtained. In the next step, the contribution of each supplier (DGs) in the loss of each line is calculated. Finally, a normalization factor is introduced and the contributions of each load and each DG in the loss of each line have been calculated separately. The proposed algorithm is simple and easy to implement on the large-scale distribution systems. This algorithm has been applied on 2 distribution systems, and the results are compared with other LA methods. The results confirm the performance and validity of the algorithm. KEYWORDS DGs, injected power, line loss, loss allocation LossLine sk DGx , the total contribution of DG in bus x in loss of line (s-k); CP LossLine sk inj bus ; CQ LossLine sk inj bus