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Considering the active power loss and voltage deviation, a Multi-objective Particle Swarm Optimization Algorithm (MOPSO) is presented for power system reactive power dispatch. MOPSO incorporates non-dominated sorting, crowding distance and a special mutation operation into particle swarm optimization to enhance the exploratory capability of the algorithm and improve the diversity of the Pareto solutions. Four benchmark test functions ZDT1~ZDT4 were used to test the performance of the proposed algorithm. Performance comparison between MOPSO and other typical algorithms has been conducted. The simulation results of the standard IEEE-30-bus power system indicated that MOPSO is a good choice of power system reactive power optimization. The results show that MOPSO can provide the clear relation between active power loss and voltage deviation, and it is able to offer diverse solutions for different conditions. The stability of MOPSO has been confirmed through superposing many solutions together.