Abstract A new methodology, the Unrestricted Wind Farm Layout Optimization (UWFLO), that addresses critical aspects of optimal wind farm planning is presented in this paper. This methodology simultaneously determines the optimum farm layout and the appropriate selection of turbines (in terms of their rotor diameters) that maximizes the net power generation. The farm layout model obviates traditional restrictions imposed on the location of turbines. A standard analytical wake model has been used to account for the velocity deficits in the wakes created by individual turbines. The wind farm power generation model is validated against data from a wind tunnel experiment on a scaled down wind farm. Reasonable agreement between the model and experimental results is obtained. The complex nonlinear optimization problem presented by the wind farm model is effectively solved using constrained Particle Swarm Optimization (PSO). It is found that an optimal combination of wind turbines with differing rotor diameters can appreciably improve the farm efficiency. A preliminary wind farm cost analysis is performed to express the cost in terms of the turbine rotor diameters and the number of turbines in the farm. Subsequent exploration of the influences of (i) the number of turbines, and (ii) the farm land size, on the cost per Kilowatt of power produced, yields important observations.