High Quality Content by WIKIPEDIA articles! The k-medoids algorithm is a clustering algorithm related to the k-means algorithm and the medoidshift algorithm. Both the k-means and k-medoids algorithms are partitional (breaking the dataset up into groups) and both attempt to minimize squared error, the distance between points labeled to be in a cluster and a point designated as the center of that cluster. In contrast to the k-means algorithm, k-medoids chooses datapoints as centers (medoids or exemplars).