The main idea in distribution network reconfiguration is usually to reduce loss by changing the status of sectionalizing switches and determining appropriate tie switches. Recently Distribution FACTS (DFACTS) devices such as DSTATCOM also have been planned for loss reduction and voltage profile improvement in steady state conditions. This paper implements a combinatorial process based on reconfiguration and DSTATCOM allocation in order to mitigate losses and improve voltage profile in power distribution networks. The distribution system tie switches. DSTATCOM location and size have been optimally determined to obtain an appropriate operational condition. Differential evolution algorithm (DEA) has been used to solve and overcome the complicity of this combinatorial nonlinear optimization problem. To validate the accuracy of results a comparison with particle swarm optimization (PSO) has been made. Simulations have been applied on 69 and 83 busses distribution test systems. All optimization results show the effectiveness of the combinatorial approach in loss reduction and voltage profile improvement. (C) 2011 Elsevier Ltd. All rights reserved.