The Ability to control power flow in an electric power system without generation rescheduling or topology changes can improve the power system performance using controllable components, the line flows can be changed in such a way that thermal limits are not exceed, losses are minimized, stability margins are increased and contractual requirements are fulfilled without violating the economic generation dispatch. Flexible AC Transmission systems (FACTS) technology is the ultimate tool for getting the most out of existing equipment via faster control action and new capabilities. Voltage regulation and line loss minimization in distribution networks are challenging problems, particularly when it is not economic to upgrade the entire feeder system. This project presents a new method for achieving line loss minimization and all nodes voltage regulation in the loop distribution systems, simultaneously, by using unified power flow controller (UPFC), one of the most important FACTS devices.