The problem of improving the voltage profile and reducing power loss in electrical networks must be solved in an optimal manner. This paper deals with comparative study of Genetic Algorithm (GA) and Differential Evolution (DE) based algorithm for the optimal allocation of multiple FACTS (Flexible AC Transmission System) devices in an interconnected power system for the economic operation as well as to enhance loadability of lines. Proper placement of FACTS devices like Static VAr Compensator (SVC), Thyristor Controlled Switched Capacitor (TCSC) and controlling reactive generations of the generators and transformer tap settings simultaneously improves the system performance greatly using the proposed approach. These GA & DE based methods are applied on standard IEEE 30 bus system. The system is reactively loaded starting from base to 200% of base load. FACTS devices are installed in the different locations of the power system and system performance is observed with and without FACTS devices. First, the locations, where the FACTS devices to be placed is determined by calculating active and reactive power flows in the lines. GA and DE based algorithm is then applied to find the amount of magnitudes of the FACTS devices. Finally the comparison between these two techniques for the placement of FACTS devices are presented.