A new cluster validity index is proposed that determines the optimal partition and optimal number of clusters for fuzzy partitions obtained from the fuzzy c-means algorithm. The proposed validity index exploits an overlap measure and a separation measure between clusters. The overlap measure, which indicates the degree of overlap between fuzzy clusters, is obtained by computing an inter-cluster overlap. The separation measure, which indicates the isolation distance between fuzzy clusters, is obtained by computing a distance between fuzzy clusters. A good fuzzy partition is expected to have a low degree of overlap and a larger separation distance. Testing of the proposed index and nine previously formulated indexes on well-known data sets showed the superior effectiveness and reliability of the proposed index in comparison to other indexes. (C) 2004 Pattern Recognition Society. Published by Elsevier Ltd. All rights reserved.