In planning and operation processes of power systems, the most critical and outstanding problem is the optimal scheduling of reactive power resources. The current research study considered real power loss as well as the deviation of voltage magnitude as objective functions since these two play important roles in a power system’s operations and control. Due to the above-mentioned considerations, bi-objective optimization takes a form here. In the recent times, lot of meta-heuristic optimization techniques was implemented to elucidate ORPD problem. One such recently advanced algorithm named Interior Search Algorithm is utilized to find a solution for challenges in power system. It is observed that it is not producing accurate solution and convergence characteristic curve is also not smooth. In order to enhance the searching ability of ISA a new method called Levy Interior Search Algorithm (LISA) was proposed in this paper. In this two different strategies of LISA were proposed. In order to validate the proposed algorithm, LISA is implemented on five various standard test systems comprising IEEE 30-bus, IEEE 57-bus, IEEE 118-bus, IEEE 300-bus and IEEE 354-bus test systems. To conclude, application results of LISA are compared with the results of other optimization techniques reported in literature. The comparison reveals that the LISA Strategy-II outperformed all other optimization techniques in terms of robustness, accuracy and convergence speed.