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The iterative cross section sequence graph (ICSSG) is an algorithm for handwritten character segmentation. It expands the cross section sequence graph concept by applying it iteratively at equally spaced thresholds. The iterative thresholding reduces the effect of information loss associated with image binarization. ICSSG preserves the characters' skeletal structure by preventing the interference of pixels that causes flooding of adjacent characters' segments. Improving the structural quality of the characters' skeleton facilitates better feature extraction and classification, which improves the overall performance of optical character recognition (OCR). Experimental results showed significant improvements in OCR recognition rates compared to other well-established segmentation algorithms.