This paper proposes Enhanced Monkey Algorithm (EMA) for solving the Optimal Reactive Power dispatch problem. The main aspect in this problem is to minimize the real power loss and enhancement voltage stability index margin. This algorithm is inspired from the mountain climbing processes of monkeys where the monkeys look for the highest mountain by climbing up from their positions. The simulation results reveal improved performance of the EMA in solving an optimal reactive power dispatch problem. In order to weigh up the performance of the proposed algorithm, it has been tested on Standard IEEE 30 bus system and compared to other specified algorithms. Simulation results show that EMA is better than other algorithms in reducing the real power loss and enhancing the voltage stability Index.