The use of Distributed generation units in distribution networks has attracted the attention of network managers due to their great benefits. In this research, the location and determination of the capacity of Distributed generation (DG) units for different purposes has been studied simultaneously. The multi-objective functions in optimization model are reducing the losses of the system line, reducing voltage deviation, increasing voltage stability margin, and decreasing network's short circuit when DG units are considered in the distribution network (DN). To calculate the values of mentioned multi-objective functions, a backward and forward sweep load-flow and a short circuit calculation are used. To solve the problem, a multi-objective optimization algorithm called improved non-dominated sorting genetic algorithm–, II (INSGA-II) is used. This algorithm leads to the creation of various responses that the user can choose, as needed, for each one. A tradeoff method, based on fuzzy set theory, is used to obtain the best optimal solution. The proposed method is examined on the IEEE 33-bus test case while considering different scenarios. In the end, the feasibility and the effectiveness of the proposed algorithm for optimal placement and the sizing of DG in distribution systems have been proved.