The presence of distributed generations (DGs) in the power systems is causing problems such as increasing the short circuit current levels which may exceed the rating of existing circuit breakers and can damage system equipment. The utilization of fault current limiters (FCLs) in the network can be an effective method to overcome the above problems. Furthermore, FCL has the benefits such as improving the system security and reliability. FCL benefits depend on the number, installation location, and impedance of FCL. For this end, we require a method to determine the optimum number, impedance and locations for FCL placement. In the considered method, we have modeled the FCL placement as an optimization problem while the objectives are; bus fault current difference, reliability, the number and impedance of FCLs. Moreover, to solve the proposed problem, a new multi-objective optimization algorithm based on particle swarm optimization has been implemented. In the algorithm, several iterations have been considered, and the non-dominated solutions are extracted and stored in an external repository in the iterations. Finally, a fuzzy clustering technique is used to control the size of the repository during the algorithm evolution. The proposed approach is tested on a test system, namely, RBTS 2 . The obtained results demonstrate the effectiveness and feasibility of the new method.