A combination of fuzzy logic, genetic algorithm and dynamic programming has been applied to optimize the problem of capacitor placement on distribution feeders. The cost function consists of three terms: the total cost of energy loss, the total cost of capacitors, including the purchase and installation costs, and one constant term related to total cost of produced power in peak load condition. A multi-objective and non-differentiable optimization problem is formulated. The proposed method of this article uses fuzzy reasoning for siting of capacitors, optimized by genetic algorithm, which finds the optimum weighting factors of fuzzy membership functions. Dynamic programming is used for sizing of the capacitors. Varying load condition of the distribution system has been considered in the optimization problem. The proposed method has been implemented in a software package and its effectiveness has been verified on a 34-bus radial distribution feeder, as a practical case study. A comparison has been made between the proposed method of this paper and similar methods in other research works, which shows the effectiveness of the proposed method of this paper for solving optimum capacitor planning problem.