In this paper, a fuzzy scatter difference discrimininant criterion is presented. Based on this criterion, fuzzy clustering algorithm FMSDC (fuzzy maximum scatter difference discriminant criterion based clustering algorithm) is also presented. The proposed algorithm reduces dimensionality while clustering by iterative optimizing procedure. First, it introduces the fuzzy concept into maximum scatter difference discriminant criterion; then the parameter η in the fuzzy criterion is appropriately determined based on specific principles so that the sensibility aroused by parameter η can be decreased to some extent; At last clustering and reducing dimensionality are realized according to fuzzy membership μ_ik and optional discriminant vector ω, respectively. Experimental results demonstrate the proposed method FMSDC is not only capable of clustering but also robust and capable of reducing dimensionality.