This document presents a two-stage methodology for optimal placement and sizing of distributed generation (DG) units in transmission and distribution systems for loss reduction. The first stage uses a fuzzy inference system to determine optimal DG locations based on loss and voltage indices. The second stage uses the Gravitational Search Algorithm (GSA) to calculate the optimal DG sizes at the identified locations to maximize loss reduction. The proposed approach is tested on IEEE 5-bus, 14-bus, and a 62-bus Indian practical system, demonstrating reductions in power losses and improvements in voltage profiles with optimally placed and sized DG.