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One of the modern and important techniques in electrical distribution systems is to solve the networks problem of service availability, high loss and low voltage stability by accommodating small scaled de-centralized generating units in these networks, which is known as distributed generation (DG).This paper presents a new methodology using a new population based meta heuristic approach namely Modified Artificial Bee Colony algorithm (ABC) for the placement of Distributed Generators (DG) in the radial distribution systems to reduce the real power losses and to improves supply quality and reliability, reduces green house effects, improves voltage profile in radial distribution system, reduces line loss and environment impact. The modification is in the neighbouring search of the artificial bee colony (ABC) algorithm. The suggested method is programmed under MATLAB software and is tested on IEEE 33-bus test system and the results are presented. The method is found to be effective and applicable for practical network.