In this research, the impacts of installing DG on a residential distribution circuit are explored. The work is focused on analyzing the impact of DG installation on distribution network operation including voltage analysis, electric losses and reliability of the system. First, various DG penetration levels and the impact of distributing the DG across several locations are explored. Secondly, the impacts of installing DG on any one phase on the voltage profiles of the unbalanced three-phase distribution network are investigated. Thirdly, the losses of the system are analyzed. Next, the reliability analysis (SAIDI, CAIDI, ENS, and AENS) of the system is performed by installing DGs as backup generators. Different DG penetration levels, locations and the impacts of installing one large-scale DG on the main distribution line vs. several small-scale randomly distributed DGs are explored. A residential distribution circuit in Blacksburg, VA was built using its one-line diagram in DEW (Distributed Engineering Workstation) to perform detailed analysis. The research involves several case studies that explore the impacts of installing distributed generation (DG) on residential distribution network operation including the voltage profile, losses, and reliability indices of the system.