In order to improve the system-side application technology of series resonant-type fault current limiter (SRFCL), this paper proposes an optimization model and method constrained with power losses for optimal sitting and parameter selection of SRFCL. A mathematical model is initially developed based on particle swarm optimization (PSO) algorithm, whose objective function is subject to the minimization of the total impedance of SRFCLs and the power loss increment, bounded by the inequality constraints including short circuit current, bus voltage, current limiting reactance and candidate location. PSS/E software and the particle swarm optimization toolbox in Matlab are employed to solve the above optimization problem. The case study has been carried out in a modified IEEE-39 bus test system, and the comparison with the results from different SFCL placement schemes demonstrates that this methodology is effective, and it improves the economic indicator of the traditional method through introducing the system loss variable.