In recent years, integration of new distributed generation (DG) technology in distribution networks has become one of the major management concerns for professional engineers. This paper presents a dynamic methodology of optimal allocation and sizing of DG units for a given practical distribution network, so that the cost of active power can be minimized. The approach proposed is based on a combined Genetic/Fuzzy Rules. The genetic algorithm generates and optimizes combinations of distributed power generation for integration into the network in order to minimize power losses, and in second step simple fuzzy rules designs based upon practical expertise rules to control the reactive power of a multi dynamic shunt FACTS Compensator (SVC, STATCOM) in order to improve the system loadability. This proposed approach is implemented with the Matlab program and is applied to small case studies, IEEE 25-Bus and IEEE 30-Bus. The results obtained confirm the effectiveness in sizing and integration of an assigned number of DG units.