Distribution networks have problems such as an increase in active losses, overload on distribution substations, voltage drop, decrease in network reliability, increase in load unbalance and unbalance in line current due to variable characteristics in terms of load consumption. In this article, to reduce losses, improve the voltage profile and increase the reliability of the system, the UPQC (Unified Power Quality Controller) optimal placement and reconfiguration method have been used in the distribution network. The two objective functions of losses and the mean voltage deviation are defined by considering the reliability indices. Since the reconfiguration of distribution networks is a large-scale nonlinear hybrid optimization problem with several constraints, the genetic algorithm combines genes including key numbers and UPQC location, UPQC series power size, UPQC shunt power size used to solve the problem. The proposed method is implemented in three steps on IEEE 33-bus and 69-bus standard networks by considering the load model List of Symbols and Abbreviations: agr, agriculture load; com, commercial load; C i , number of loads connected to the ith bus; D, load coefficient; F1, F2, objective functions; fraci,k, the amount of load lost in the ith bus; gen, general load; I EAF_a , main current component of a phase; Ii, current of feeders; Ii, input current to bus i; ind, industrial load; i p , reference current phase component for active power; i q , reference current phase component for reactive power; I ref_a , current reference of the a phase; I s , source current; n, number of buses; P 0i , Q 0i , active and reactive power at a per-unit voltage of bus i; Pi, Q i , active and reactive power passing through branch i; P ref , reference active power; P rk , probability of losing the ith bus; P total,loss , total active network losses; Q a , reactive power of a phase; Q L , reactive power demand; res, residential load; ri, resistance of branch i; S, tnumber of UPQCs installed in the network; V DC_ref , treference DC voltage; V i , voltage of Bus i; V trans_a , effective value of the voltage of the a phase; V s , source voltage; Y ij , admittance matrix; Z s , source impedance; Δδ i , changes in voltage angle of bus, changes in voltage magnitude of bus i; ΔP i , changes in active power of bus i; ΔQ i , changes in reactive power of bus i; γ, τ, active and reactive charge change coefficient; ACS, ant colony search; ACIFi, average fixed number of each customer (1/a) per year; AENS, average energy not supplied per customer; AI