This paper presents a multi-objective method to optimally place the Distribution Static Synchronous Compensator (D-STATCOM) in a distribution system using the multi-objective genetic algorithm (MOGA). In the proposed method, the average current total harmonic distortion (THD), installation and operation cost functions are considered as the objective functions, where input harmonic limitations for individual buses are chosen as the optimization constraints. The application of this optimization is based on a novel forward-backward harmonic load flow method by comparing input current THD, device generated harmonics and impacts of output THD on the network. The performance of this algorithm is evaluated using the Matlab software on the radial IEEE 33-bus test system. The simulation results verify the capability of the MOGA in accurately determining the optimal location of the D-STATCOM in radial distribution systems.