No-load losses are caused by the magnetizing current that needed to energize the transformers core. These losses are constant and occur 24 h a day, regardless of the load. So, the customers should pay the fixed monthly cost for these losses. In recent years, amorphous alloy has been used to improve distribution transformers performance with the decrease in No-load losses and the increase in the efficiency of transformers. This paper outlines the 2605SA1 amorphous core as a new development of the amorphous alloy with a higher saturation induction. This paper presents a comparison between traditional distribution transformers and amorphous distribution transformers. Distribution of flux density in two different transformers with amorphous core and M5-type silicon steel core has been simulated using 3-D finite element modelling. The simulation and modelling results have been compared with the tests results of 630 kVA, 34.5/0.4 kV prototypes manufactured in the TEK TRANSFORMER factory in Turkey. A good agreement has been obtained between the simulation and experimental results. The simulation and test results show that amorphous core considerably (about 63%) reduces the no-load power losses as well as efficiency of transformers.