Most electrical distribution systems (EDS) are radially structured so that primary and secondary protection control devices can work together well. Because they have a high R/X ratio in their design, they also have a bad voltage profile, high distribution losses, and less stability margins. As a result, integrating reactive power compensation devices like the distribution-static VAr compensator (D-SVC) can solve these issues. Yet, the situation can get worse if D-SVCs are placed and rated incorrectly in radial distribution networks (RDNs). Determining the optimum locations and their ratings simultaneously requires an updated version of the Firefly algorithm (FA) with adaptive parameters, which is introduced in this paper as the adaptive firefly algorithm (AFA). The multi-objective function that has been presented relates to improving loadability, voltage stability, and reducing active power loss. On the IEEE 69-bus, simulations are run for three different VAr compensation levels. In comparison to the base case, the losses are reduced by 34.04% and 33.14% with 50% and 75% VAr compensation, respectively. But for the optimal VAr compensation of 73.14 percent by AFA, the losses are reduced by 35.29 percent, which is higher than both under and over compensation cases. Similarly, the loadability margin is increased to 3.099 p.u. with optimal VAr compensation, but it is observed as only 2.833 p.u. and 2.939 p.u. with 50% and 75% VAr compensation, respectively. On the other hand, the findings produced with APF demonstrate its efficiency for resolving complex optimization issues and outperform those obtained with previous research. Also, the proposed D-SVCs allocation has improved RDN's overall performance, demonstrating how well it adapts to real-time applications.