AbstractThe paper represents a comprehensive review of the wind farm layout and reliability assessment of the wind farm integrated electrical power system. The authors have done a review on the proliferation of renewable energy which raises the uncertainties in the electrical power system. The uncertainties including wind speed and wake effect are important to deal with when an isolated microgrid is considered. The scenario becomes vigilant when the wind farms are integrated with the main grid. Due to uncertainties, the study of reliability evaluation of a wind integrated power system would become significant to analyse the electrical power system behaviour effectively. So, the paper discusses the layout optimisation methods of wind turbines considering the uncertainty parameters, mainly the wake effect. In this regard, the different wake models and optimisation methods based on a single‐objective and multi‐objective functions are reviewed in detail with the proper comparisons. The paper serves as a better illustration of the competency of these optimisation methods on the optimal wind turbine location on a wind farm. Furthermore, the paper extends the view on the reliability and cost assessment, and reliability improvement techniques of the wind integrated power system. This article provides comprehensive information, yields an attractive and subsequent tool for research requirements for the researchers to design the wind farm layout, and assessed the reliability of a wind integrated power system.