The growth in Distributed Generation (DG) saturation in distribution network by thegrowing load demand without the renovation of distribution lines. Though, this increasing load demand response the additional supply from DG sources can cause the system to operate at its maximum capacity or at point of voltage collapse. It is necessary to calculate the maximum capacity limit of the system before voltage collapse occurs due to stability.This paper derived a novel voltage stability indicator (VSI) as an indexes including power losses other VSIs not including the power losses. The novel VSI is to find most critical bus that is very near to its maximum allowable limit or maximum power flow capacity of the lines. The novel VSI is determines the voltage collapse limit of the buses or the stability level of the network from the new distributed power flow analysis for determining the electrical parameters from the branch exchange method followed by a forward backward sweep algorithm.The analysis furthermore evaluates various voltage stability indices for transmission systems. Successively, their capabilities are quantitatively comparedusing the MATLAB R2016 software have been executed. The simulation results were carried out for the various distribution lines like RACOON, WEASEL, SABER and RABITE. The result of the proposed VSI provides a powerful indicator to determine the point of accurate stability of most dangerous bus or line on the verge of voltage collapse for modern distribution systems.