A new multi-objective optimization method based on differential evolution with adaptive Cauchy mutation (MODE-ACM) is presented to solve short-term multi-objective optimal hydro-thermal scheduling (MOOHS) problem. Besides fuel cost. the pollutant gas emission is also optimized as an objective. The water transport delay between connected reservoirs and the effect of valve-point loading of thermal units are also taken into account in the presented problem formulation. The proposed algorithm adopts an elitist archive to retain non-dominated solutions obtained during the evolutionary process. It modifies the DE's operators to make it suit for multi-objective optimization (MOO) problems and improve its performance. Furthermore, to avoid premature convergence, an adaptive Cauchy mutation is proposed to preserve the diversity of population. An effective constraints handling method is utilized to handle the complex equality and inequality constraints The effectiveness of the proposed algorithm is tested on a hydro-thermal system consisting of four cascaded hydro plants and three thermal units. The results obtained by MODE-ACM are compared with several previous studies It is found that the results obtained by MODE-ACM are superior in terms of fuel cost as well as emission output, consuming a shorter time. Thus it can be a viable alternative to generate optimal trade-offs for short-term MOOHS problem (C) 2009 Elsevier Ltd. All rights reserved.