The application of capacitors in distribution system is well known to electrical engineers. The use of capacitors is accepted as a necessity in the distribution system design. Reactive currents produce losses, so to compensate these losses capacitors are employed. In design of capacitor banks the following parameters are to be focused: voltage profile, power factor and the released capacity. It is obvious that capacitor will compensate the losses produced by the reactive currents. But the next question arises where to place the capacitors in the distribution system and what should be its size so that its optimal placement can be done. This paper work focus on comparison of different types of Conventional and Artificial techniques used for optimal placement of capacitors in distribution system.