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In recent years, the number of small size wind farm made up with doubly fed induction generators (DFIG) located within the distribution system is rapidly increasing. DFIG can be utilized as the continuous reactive power source to support system voltage control by taking advantage of their reactive power control capability. In this paper, the reactive power output of DFIG wind farm has been considered as the control variables in the reactive power optimization algorithm by considering the reactive power compensation capability of DFIG. The minimization of total system real power loss and voltage deviation are utilized as an objective and the particle swarm optimization (PSO) is used to determine the reactive power output of DFIG wind farm, tap positions of load tap changer transformers (LTC) and numbers of the capacitor banks in the distribution system. Finally, the proposed algorithm is applied to the 33-node distribution system and the results obtained demonstrate the efficiency of the algorithm.