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Distributed generation is becoming an integral part of electrical distribution systems, which implies a subsequent increase in the induction of power electronic inverters into the power systems. These inverters being non-linear in nature produce harmonic distortion in voltage. To worsen the scenario, the present day distribution systems are already frazzled by many non-linear domestic loads. The adverse effects of high level of harmonic distortion are well established in the theory. Therefore, it is of utmost importance to investigate the impacts of distributed generation on the harmonic distortion level of a residential distribution system already stressed by non-linear domestic appliances. This research work makes an effort to address the very same issue. The experimentally developed harmonic model of an inverter is deployed to perform the simulation of a typical UK distribution system in Electrical Transient Analyzer Program. The results show a remarkable increase in the total harmonic distortion in the voltage and third individual harmonic in voltage, in the presence of distributed generation, at the point of common coupling. However, the total harmonic distortion in the current reduces which subsequently reduces the line losses.