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Optimal allocation of distributed generators (DG) in the radial distribution system plays a significant role in minimizing real power losses, network operational cost and improved voltage profile. The aim of the work is to select optimal sizes and locations for DGs in radial distribution systems (RDS) to minimize losses, improve voltage profile and minimize operating cost. Improved Differential Search Algorithm (IDSA) is used to solve the optimization problem via Pareto optimal approach by considering technical and financial benefits of DGs as objectives. Proposed approach is implemented on standard 33-bus and 69-bus RDS and the results are compared with the existing methods. The proposed approach is capable of producing high quality solution with satisfied constraints. Keywords: Distributed generators, Pareto optimization, Improved differential search algorithm, Minimization of real power loss and network operating cost