As residential PV generation penetrates in the low‐voltage distribution network (LVDN), the unbalance issue may be intensified due to the asymmetry of generations/loads in different phases. Phase‐reconfiguration device (PRD), which can reconfigure connected phases of residential customers, provides an effective method to address this issue. Noting that although the benefit brought by PRDs can vary if they are placed at different locations in the network, little literature has been reported on this topic. To bridge the research gap, this paper presents a novel method to optimally place PRDs in an LVDN aiming at minimizing the power unbalance running through the distribution transformer. The problem considers both installation, operational constraints, and boils down to a challenging mixed‐integer non‐convex programming problem, which is then reformulated as an efficient solvable mixed‐integer linear programming problem. Moreover, operational constraints are relaxed with slack variables penalized in the objective function, which makes sure a feasible solution is always available without or with minimal operational violations. Case studies based on a modified IEEE system and a practical system in Australia demonstrate that an efficient strategy can be provided to address the unbalance issue while improving the network's power supply qualities.