This paper has discussed transformer tap pos ition estimation with continuous and discrete variables in the context of three phase distribution state estimation (SE). Ordinal optimization (OO) technique has been applied to estimate the transformer tap position for the first time in unbalanced three p hase distribution network model. The results on 129 bus system model have demonstrated that OO method can generate a reliable estimate for transformer exact tap position with discrete variables in distribution system state estimation (DSSE) and also in sho rt period of time. In this paper the node voltages and power losses are calculated for 129 bus network. It is also demonstrated that OO is much faster than other accurate methods such HPSO. T...