The placement of the UPFC is the major concern to ensure the full potential of utilization in the transmission network. Voltage stability enhancement with the optimal placement of UPFC using stability index such as modal analysis, Voltage Phasor method is made and the loss minimization including UPFC is formulated as an optimization problem. This paper proposes particle swarm optimization for the exact real power loss minimization including UPFC. The implementation of loss minimization for the optimal location of UPFC was tested with IEEE-14 and IEEE-57 bus system.