In this paper a new approach using the 0-1 integer programming method for reconfiguration of unbalanced radial distribution systems with the presence of distributed generators for voltage profile improvement and power loss minimization is presented. In practice, unbalanced distribution feeders of power utilities are characterized by low power quality, low voltage profile, more investment and high operating costs. By installing Distributed generators, voltage profile and reliability of unbalanced power distribution systems can be improved with minimization of power losses. In this paper the distributed generators have been modeled as photovoltaic (PV) systems in the unbalanced distribution system. Reconfiguration of unbalanced feeders is a good technique to balance the unbalanced distribution systems to improve the voltage profile and minimize the power losses. The results obtained with the proposed methodology on an example unbalanced power distribution system demonstrate its applicability.