This paper proposes a hybrid particle swarm optimization (HPSO) method to solve the multi-objective reactive power dispatch problem of minimizing transmission losses and maximizing voltage stability. The HPSO method expands on PSO and genetic algorithms to handle mixed integer and nonlinear optimization problems with both continuous and discrete control variables. The method is evaluated on the IEEE 30-bus and 57-bus test systems. Results show the HPSO approach improves voltage stability compared to conventional, genetic algorithm, and particle swarm optimization methods.