Nowadays, utilities aim to find methods for improving the reliability of distribution systems and satisfying the customers by providing the continuity of power supply. Different methodologies exist for utilities to improve the reliability of network. In this paper, demand response (DR) programs and smart charging/discharging of plug-in electric vehicles (PEVs) are investigated for improving the reliability of radial distribution systems adopting particle swarm optimization (PSO) algorithm. Such analysis is accomplished due to the positive effects of both DR and PEVs for dealing with emerging challenges of the world such as fossil fuel reserves reduction, urban air pollution and greenhouse gas emissions. Additionally, the prioritization of DR and PEVs is presented for improving the reliability and analyzing the characteristics of distribution networks. The reliability analysis is performed in terms of loss of load expectation (LOLE) and expected energy not served (EENS) indexes, where the characteristics contain load profile, load peak, voltage profile and energy loss. Numerical simulations are accomplished to assess the effectiveness and practicality of the proposed scheme.