This paper presents a particle swarm optimization (PSO) algorithm for optimal network reconfiguration of distribution systems, incorporating distributed generation (DG) and shunt capacitors to improve load balancing and voltage profiles. The effectiveness of the PSO approach is validated through simulations of a 69-node system, demonstrating significant reductions in load balancing index and power losses compared to existing methods. Results indicate the proposed PSO offers efficient solutions for enhancing the performance of electrical distribution systems.