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This paper proposed a binary particle swarm optimization (BPSO) for capacitor optimal placement on radial distribution network. Harmonic distortion of voltage sources in network caused a double harmonic current injection, increasing network losses and incidence of resonance phenomenon; Therefore the issue of expression, harmonic distortion of voltage sources is considered. Moreover selected BPSO method for considering the discrete nature of the placement problem; Whereas most of the articles has been considered this problem continuously this issue caused reduction of the result accuracy to determine the size, exact location of capacitors and non-convergence of problem. Finally, The proposed method has been applied to 28-Bus IEEE standard radial distribution network to reduce loss and improve voltage profile with regard to harmonic distortion of voltage sources in various levels of network load during the one day.