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This article presents an efficient algorithm for the loss minimization by automatic sectionalizing switch operation in large-scale distribution systems. Simulated annealing is particularly well suited for large combinational optimization problems, but the use of this algorithm also requires excessive computation time. Tabu search attempts to determine a better solution in the manner of a greatest-descent algorithm, but it cannot give any guarantee for the convergence property. The hybrid algorithm of these two methods with some adaptations is applied to improve the computation time and convergence property. Numerical examples demonstrate the validity and effectiveness of the proposed methodology using a Korea Electric Power Corporation''s distribution system. [Copyright &y& Elsevier]