This paper presents an efficient algorithm for loss reduction and load balancing by sectionalizing switch operation in large scale distribution system of radial type. We use Genetic algorithm and Kruskal algorithm to solve distribution system reconfiguration. Genetic algorithm is used to minimize objective function including loss and load balancing items. Kruskal algorithm is used to satisfy the radial condition of distribution system. The experimental results show that the proposed method has the ability to search a good solution regardless of initial configuration and size of system.