Participation of distributed energy resources in the load restoration procedure, known as intentional islanding, can significantly improve the distribution system reliability. Distribution system reconfiguration can effectively alter islanding procedure and thus provide an opportunity to supply more demanded energy and reduce distribution system losses. In addition, high-impact events such as hurricanes and earthquake may complicate the procedure of load restoration, due to disconnection of the distribution system from the upstream grid or concurrent component outages. This paper presents a two-level method for intentional islanding of a reconfigurable distribution system, considering high impact events. In the first level, optimal islands are selected according to the graph model of the distribution system. In the second level, an optimal power flow (OPF) problem is solved to meet the operation constraints of the islands by reactive power control and demand side management. The proposed problem in the first level is solved by a combination of depth first search and particle swarm optimization methods. The OPF problem in the second level is solved in DIgSILENT software. The proposed method is implemented in the IEEE 69-bus test system, and the results show the validity and effectiveness of the proposed algorithm.