Metal Oxide Surge Arrester (MOSA) accurate modeling and its parameter identification are very important aspects for arrester allocation, system reliability determination and insulation coordination studies. In this paper, Modified Particle Swarm Optimization (MPSO) algorithm is used to estimate the parameters of surge arrester models. The convergence to the local optima is often a drawback of the Particle Swarm Optimization (PSO). To overcome this demerit and improve the global search capability, Ant Colony Optimization (ACO) algorithm is combined with PSO algorithm in the proposed algorithm. The suggested algorithm selects optimum parameters for the arrester model by minimizing the error among simulated peak residual voltage values given by the manufacturer. The proposed algorithm is applied to a 120 kV MOSA. The validity and the accuracy of estimated parameters are assessed by comparing the predicted residual voltage with experimental results. (C) 2011 Elsevier Ltd. All rights reserved.