The traditional genetic algorithm has the shortcomings of premature convergence and slow convergence. This paper adopts improved niche technology to solve this problem. It also uses the specific issues to improve the genetic operators, and the improved niche genetic algorithm is applied to Clustering Mining. As the K-means algorithm in the clustering algorithm for mining has the problem of the selection of the initial value of K-senstive and if we select a different value, it will lead to a different clustering result. It is easy to fall into local optimum. So it will make poor clustering results. Therefore, this article combines the improved niche genetic algorithm with K-means algorithm to produce a new improved algorithm named an improved niche genetic clustering algorithm. It is verified that the algorithm is valid in improving the quality of clustering analysis.