Increasing energy demand and recent advancements in electrical and distributed generation (DG) technology have made power systems complex. Therefore, the reliability assess-ment is important for efficient planning and operation of distribution networks. The system reliability can be improved with the optimal DG integration and energy management schemes. This work mainly studies the impact of optimal DG planning with an energy management scheme on the reliability of a radial distribution network. Usually, the reliability of a power system is evaluated using the distribution system reliability indices, which are based on load point and customers. The voltage-dependent load model and time-varying load profile for different load classes are included in this work for pragmatic planning. Particle swarm optimization (PSO) algorithm is used to find the optimal site and size of DG units and optimal scheduling of the shiftable loads. The proposed model of optimal DG allocation with energy management is evaluated with a case-based analysis. The modified IEEE 33-bus distribution system is considered in this model to demonstrate the improvement of reliability and operational parameters. Simulation results verify the efficacy of the model.