The integration of Distributed Generation (DG) into existing electrical networks is critical, as it can either enhance or degrade grid performance. Therefore, prior to DG integration, a thorough assessment involving load flow analysis and stability evaluation is essential. Since the location and sizing of DG units significantly influence voltage stability and network performance, this study employs a quantitative optimization-based approach using a hybrid Backward–Forward Sweep (BFS) and Particle Swarm Optimization (PSO) framework to determine the optimal placement and sizing of DG units in radial distribution systems. The proposed method is validated using the IEEE-33 bus system, where optimal DG allocation achieves a 49.71% reduction in power losses and a 6.85% voltage improvement at the weakest bus. The algorithm is further applied to real-world power networks in Mizoram, India, specifically the Bawktlang–Saiphai and Bawktlang–Bukpui networks. In the Bawktlang–Saiphai network, the proposed approach results in an 87.90% reduction in power loss and a 23.16% increase in voltage at the weakest bus, while in the Bawktlang–Bukpui network, power losses are reduced by 83.48%, leading to a 36.58% voltage improvement. The proposed framework is applicable to radial distribution systems and may be extended to similar regional and practical distribution networks for enhanced operational performance and voltage stability.
