Abstract: This study presents optimal placement of Phasor Measurement Units (PMUs) for the purpose of power system observability using topology based formulated algorithms. The optimal PMU placement problem is formulated to minimize the number of PMUs installation subject to full network observability. The Branch and Bound (B and B) and genetic algorithm optimization methods are selected to solve the problem, which are suitable for problems with integer and Boolean variables. Topology-based algorithm used for observability analysis and a hybrid method of topology transformation and nonlinear constraint is used to form constraints. The IEEE 14, 30, 57 and 118-bus and the New England 39-bus test systems are used for simulation purposes. The results are compared with those of previously implemented. Results show that with installing PMUs on less than 25% of system buses all of the system can be made observable.