“Unified Power Quality Conditioner (UPQC)” is deployed in power systems for overcoming the issues related with voltage dips or rises in source voltage. Moreover, it controls the load voltage and mitigates the entire problems related with voltage and current harmonics, thereby enhancing the power quality (PQ). Here, this work presents a PQ enhancement approach by integrating the optimization concept. For optimization purpose, this work deploys the “Grey Wolf Optimization with Self-adaptiveness (GWO-SA)” model. Here, the presented model determines the optimal allocation of UPQC by taking into consideration of power system loss, UPQC cost and stability as well. Further, the superiority of GWOSA is validated and compared over existing works with respect to varied measures such as cost and location analysis. From the analysis, the performance of the implemented work when the number of location=1 is 0.21%, 0.59%, 0.77% and 0.26% better than SLnO, GWO, DA and PSO, respectively at 0% loading condition.