Abstract Sectionalizing switches (SSs) have been installed in Distribution networks with the aim of providing maneuver and ring points, so raising service reliability. It is usually assumed that these switches are totally reliable although, in practice, they have not ideal efficiency at all times. In fact, the switches might occasionally face failure, which decreases their capability with the aim of enhancing system reliability. A model with the aim of considering the failure probability of the switches in their optimal placement issue is proposed in this paper. The model aids with the aim of minimizing the whole costs of SSs and the interruption costs incurred through interrupted users. This study uses the discrete Markov chain model with the aim of obtaining the malfunction possibility under various states. Afterwards, the placement problem is solved with the aim of obtaining the global optimal solution with genetic algorithm. The advantage of the suggested model has been investigated according to sensitivity analysis and various scenarios. The research illustrates how the outcomes of the placement issue have been influenced through the uncertainty arising from the possible failure of the switches and how ignoring the uncertainty is able to cause deviation of the anticipated profit from the real one. The efficiency of the suggested procedure has been evaluated and shown through investigating on the Ahwaz city distribution network. The outcomes of simulation prove the ability and precision of the suggested procedure.