This study introduces a novel hybrid algorithm designed to optimize the location and sizing (OLS) of distributed generation (DG) sources in a distribution system (DS), considering the impact of reactive load integration. By combining the Novel Line Stability Index (NLSI) with the Artificial Rabbit Optimization (ARO) algorithm, the approach strategically identifies the OLS for photovoltaic (PV) and battery energy storage systems (BESS) across different seasonal load scenarios. The main objectives are boosting voltage stability, refining voltage profiles, and minimizing power losses (PL). Applied to the IEEE 33-bus DS, the hybrid algorithm demonstrates remarkable improvements, achieving up to a 95.16% reduction in energy losses and a 99.65% reduction in voltage deviation. These impressive results underscore the algorithm's ability to enhance system efficiency significantly over conventional techniques. Additionally, this study highlights system behavior under atypical conditions with reactive load integration, offering a robust and effective solution for improving DS performance in challenging scenarios.