An　algorithm　based　on　induction-enhanced　particle　swarm　optimization　and　chaos　search　is　proposed　for　reactive　power　optimization　to　solve　the　problems　of　traditional　PSO(Particle　Swarm　Optimization),　such　as　local　optimum　and　slow　convergence,　and　improve　the　ability　of　global　optimization.　During　the　early　search,　the　induction　is　introduced　to　the　update　of　particle　position　to　decrease　the　randomicity　of　PSO　and　improve　the　search　efficiency,　while　during　the　late　search,　the　strange　attractor　character　of　chaos　is　applied　to　effectively　avoid　the　premature　of　PSO　and　find　the　global　optimal　solution.　Calculations　for　a　power　distribution　system　show　that,　the　optimal　loss-lowering　rate　is　14.04%,　and　the　minimum　voltage　is　increased　from　0.8950　p.　u.　to　0.9956　p.　u.,　validating　the　feasibility　and　effectiveness　of　the　proposed　algorithm.