Distributed Generation (DG) placement on the basis of minimization of losses and maximization of system voltage stability are two different approaches, discussed in research. In the new proposed algorithm, a multi-objective approach is used to combine the both approaches together. Minimization of power losses and maximization of voltage stability due to finding weakest voltage bus as well as due to weakest link in the system are considered in the fitness function. Particle Swarm Optimization (PSO) algorithm is used in this paper to solve the multi-objective problem. This paper will also compare the propose method with existing DG placement methods. From results, the proposed method is found more advantageous than the previous work in terms of voltage profile improvement, maximization of system loadability, reduction in power system losses and maximization of bus and line voltage stability. The results are validated on 12-bus, 30-bus, 33-bus and 69-bus radial distribution networks and also discussed in detailed. (C) 2013 Elsevier Ltd. All rights reserved.