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This work presents a fuzzy iterative learning control (FILC) approach for reactive power planning in distribution systems. The reactive power is control by shunt capacitor banks. The problem formulation considers two distinct objectives related to total cost of power loss and total cost of capacitors including the purchase and installation costs. The formulation is a multi-objective and non-differentiable optimization problem. The proposed method of this article uses FILC for sizing and sitting of capacitor banks in radial distribution feeders. The proposed method has been implemented in a software package and its effectiveness has been verified through a 9-bus radial distribution feeder along with a 34-bus radial distribution feeder for the sake of conclusions supports. A comparison has been done among the proposed method of this paper and similar methods in other research works that shows the effectiveness of the proposed method of this paper for solving optimum capacitor planning problem.