The prime objective of this study is the simultaneous network reconfiguration with distributed generation (DG) and capacitor placement in radial distribution networks (RDN) to get the techno and economic benefits for two separate objectives, which are the minimization of actual power loss and annual economic loss as well as a multi objective combining these two single objectives using an oppositional arithmetic optimization algorithm (OAOA). It is an improved version of the currently suggested arithmetic optimization algorithm (AOA) used in the field of engineering for the optimization task. Though the recently developed AOA shows its efficacy in different optimization tasks but to improve the quality of solutions, convergence behavior, and to avoid the local optima, oppositional behavior is added to AOA. The efficacy and exactness of OAOA are tested on three test systems (33‐bus, 69‐bus, and 118‐bus). For the reduction of power loss and annual economic loss as well as the multi objective optimization, two scenarios with different cases are executed using OAOA in RDNs. In scenario 1, the installation of the capacitor (case 1), the installation of unity power factor (UPF) based DG (case 2), and the placement of optimal power factor (OPF) based DG (case 3) have been executed. In scenario 2, allocation of UPF based DG and capacitors simultaneously (case 1), placement of OPF based DG and capacitors simultaneously (case 2) and simultaneous reconfiguration with installation of OPF based DG and capacitor (case 3) has been executed. This recommended OAOA algorithm provides the percentage improvement in real power loss and yearly economic loss for all cases of 33‐bus, and 69‐bus systems (34.28%, 65.50%, 94.43%, 93.26%, 94.89%, and 95.11%), (28.54%, 56.69%, 83.42%, 79.62%, 83.65%, and 83.71%), and (35.51%, 69.16%, 98.10%, 97.52%, 98.22%, and 98.25%), (30.26%, 61.68%, 88.75%, 85.42%, 88.81%, and 88.98%), respectively. The results and comparative study reveal that the OAOA is better than several optimization algorithms in terms of solution quality and good results. This algorithm has a good speed of response and convergence behavior.