This article proposes a new approach based on a bio-inspired Cuckoo Search Algorithm (CSA) that can significantly envisage with several issues for optimal allocation of distribution static compensator (DSTATCOM) in Radial Distribution System (RDS). In the proposed method, optimal locations of the DSTATCOM are calculated by using the Loss Sensitivity Factor (LSF). The optimal size of the DSTATCOM is simulated by using the newly developed CSA. In the proposed method, load flow calculations are performed by using a fast and efficient backward/forward sweep algorithm. Here, the mathematically formed objective function of the proposed method is to reduce the total system power losses. Standard 33-bus and 69-bus systems have been used to show the effectiveness of the proposed CSA-based optimization method in the RDS with different load models. The simulated results confirm that the optimal allocation of DSTATCOM plays a significant role in power loss minimization and enhanced voltage profile. The placement of DSTATCOM in RDS also plan an important role for minimizing uncertainties in the distribution level. The proposed method encourages one to use renewable-based resources, which results in affordable and clean energy