The problem regarding the optimal integration of efficient reactive power compensation in radial and meshed distribution networks using fixed-step capacitor banks and distribution static compensators (D-STATCOMs) is addressed in this research paper by proposing a master−slave optimization methodology. Radial and meshed distribution topologies are considered for the grid structure while including variable active and reactive demand curves. An economic analysis is performed, considering the net present value of the optimization plan, as well as the costs of energy losses and the capacitor banks’ acquisition, installation, and operation. In the case of the D-STATCOMs, an annualized costs analysis is presented. In the master stage, the discrete version of the generalized normal distribution optimization (GNDO) algorithm selects the nodes and the sizes of the capacitor banks. In the slave stage, the successive approximations power flow approach is implemented. Numerical results in the IEEE 33-bus grid (with both radial and meshed topologies) and the IEEE 85-bus grid (with a radial configuration) demonstrated the proposed master−slave optimization’s effectiveness in minimizing the project’s expected net present value for a planning period of five years. Moreover, a simulation in the IEEE 69-bus grid under peak operation conditions showed that the GNDO approach is an excellent optimization technique to solve the studied problem when compared to combinatorial and exact optimization methods. In addition, numerical validations considering D-STATCOMs in the IEEE 85-bus grid confirmed the effectiveness and robustness of the GNDO approach in addressing problems associated with optimal reactive power compensation in medium-voltage distribution systems.