The characteristics of an electric power distribution system, often radial in shape and distant from the generator, result in voltage drops. When these drops fall below tolerance levels, it adversely affects power quality for consumers connected to the distribution network. To address this issue, various methods such as network reconfiguration, distributed generator placement, and capacitor placement are employed. This study focuses on the use of capacitors to rectify voltage drops in the medium voltage distribution network in Medan city. The placement of capacitors and determination of their capacities were conducted using the Electrical Transient Analyzer Program (ETAP). Before the capacitor placement, the initial condition of the medium voltage distribution network showed an active power loss of 256.1 kW and a minimum voltage of 11.41 kV. Following the placement of capacitors on bus 18 and bus 34, each with a capacity of 600 kVAR, the power flow analysis revealed a reduction in power loss to 194.9 kW, representing a 23.90% decrease. Additionally, the minimum voltage increased to 11.891 kV, marking a 4.2% improvement.