Now-a-days, the electricity demand is increasing daily and hence it is important not only to extract electrical energy from all possible new power resources but also to reduce power losses to an acceptable minimum level in the existing distribution networks where a huge amount of power dissipation occurred. A lot of power is remarkably dissipated in Yangon distribution system. Network reconfiguration method is employed for loss reduction and exhaustive search technique is also applied to achieve the minimal loss switching scheme. Network reconfiguration is performed by opening sectionalizing switches and closing tie switches of the network for loss reduction. The distribution network for existing and reconfiguration conditions are modelled and simulated by Electrical Transient Analyzer Program (ETAP) 7.5 version software.