Distributed generation (DG) technologies are changing the conventional distribution network architecture because to their growth across different sizes and configurations. Despite the advantages of distributed power generation, there may be a number of technical hurdles caused by the incorrect integration of distributed generators into existing distribution networks. To tackle the challenges of optimum DG planning in distribution systems, this work presents a Pareto-Based, Multi Objective Arithmetic Optimization Algorithm (MOAOA). An optimization of the Voltage stability index (υꞩI), a decrease in Real Power Loss (RPS) and Reactive Power Loss, and an improvement of three critical technical components of distribution networks are the main goals of this research. We examine two instances: The first scenario examines the efficient design of microturbine DGs, which only provide active power, while the second case delves into the efficient design of synchronous generators and wind generators, which provide both reactive and actual power. In the TOPSIS approach of multi-criteria decision-making, the pareto-based MOAOA algorithm generates the optimum pareto front. To put the proposed technique to the test, it is run on two representative distribution networks: the 33 Bus and the 69 Bus IEEE systems. To prove its efficacy, MO-AOA is tested against MO-PSO, MO-GWO, and NS-GA II.