To increase the speed of the optimal placement of phasor measurement unit (PMU), an optimal placement scheme for PMU measuring point based on 0-1 integer programming algorithm is proposed. Based on 0-1 integer programming algorithm, the mathematic model is established according to node’s observability. The connectivity matrix is obtained by the connection relation between nodes and the matrix is analyzed. Mathematical model is solved to get the PMU optimal configuration position. The simulation is conducted on IEEE-14, IEEE-18 bus system, and the proposed 0-1 integer program model is verified by the Lingo software, and then PMU optimal position and speed are got. Comparing the 0-1 integer program model before improvement, the result indicates that the proposed method simplifies the number of variables, reduces the constrained conditions and iterations, and improves the convergence of calculation process. The simulations verify the effectiveness and practicality of the proposed method.