Recently,the supply capacity of domestic distribution network fails to meet the peak demand. Conservation Voltage Reduction (CVR) technique is an efficient way to solve the problem. On this basis, a multi-objective optimization method is proposed, which decides the placement and capacity of capacitor bank of CVR device in distribution network. This method targets on minimizing the system voltage deviation and active power losses and considers the installation cost of capacitor bank. Two algorithms, Non-Dominated Sorting in Genetic Algorithms II (NEGA-II) and satisfaction based fuzzy clustering method, are combined to seek the optimal solution of shunt capacitor bank configuration. Simulations results demonstrate that the proposed method can achieve the optimization of objective and provide a good VOL/VAR condition for CVR. This work is supported by National High-tech R & D Program of China (863 Program) (No. 2014AA051901).