An optimal reactive power distribution strategy is proposed to minimize total electrical losses in a wind farm (WF); These losses not only include the losses of transmission cables and transformers of wind turbines (WT), but also include the losses from inside the wind energy production systems. The distribution of reactive power inside a WT takes advantage of the optimal division strategy in the stator and the grid-side converter (GSC), which aims to minimize the overall losses of the wind power generation system; This system includes generator, converters and filters. Optimization problems are formulated based on established models for WT reactive power losses and constraints. A WF is carefully designed and used for case studies. Wake effect is considered in calculating the active power of each WT. Total WF losses are calculated by implementing the proposed strategy and at different wind speeds and with different amounts of reactive power. The simulation results show the effectiveness of the proposed strategy.