The voltage deviation from the nominal value is a major problem in the distribution system during operation of the system. Normally voltage profile of load buses decreases from source to loads at far end. With the deviation in load connected to the system, voltage profile of the load buses increases/decreases and may lead to the collapse of the system and subsequent loss of economy. Another problem in distribution system is line losses which reduces the efficiency of the system. Among the possible solutions for these problems, DG allocation is a promising one which feeds the system with additional benefits. However a non-optimal allocation of DG can adversely affect the performance of the system. This paper proposes GA based optimization algorithm to improve voltage profile of the system and simultaneously reduces the total real and reactive power losses.