Abstract: In order to improve power quality, reliability, economical and energy efficiency. It is inevitable developing trend that distributed generation (DG) is applied in the rural power network .The type of DG adapted to our country was given, and a method of placing DG was advanced in rural distribution systems. After building integrated evaluating model to node voltage, power network loss and short-circuit current, the node priority was employed to describe the DG’s effect. According to the annual minimum electric power loss and economic benefit after placing DG, the sitting and sizing of DG was determined under certain node priority. The method proposed was applied to a real main line in rural distribution systems for illustration, based on the same total capacity, effects of electric power loss and node voltage were calculated and compared by single, double and three sites of DG. The results showed that the power loss was significantly reduced, the node voltage was greatly improved, and it was lightly affected the operation of rural power grid. The results illustrate the correctness and availability of the proposed algorithm to place DG in rural power network.