We propose a method for optimal placement and sizing of distributed generation (DG) sources in an existing distribution network. The method, which uses the genetic algorithm, provides improved network parameters (i.e., voltage profile, power losses, and short circuit levels) while keeping the existing coordination of protection devices unchanged. An important feature of the proposed method is the accommodations for transient shortcircuit fault currents due to DGs and their connection/disconnection states, thus preventing undesired effects on the coordination of protection devices. To demonstrate the feasibility of the proposed method, we present simulated results for optimal placement of DGs in an existing distribution network.