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Grid resource allocation in grid environment has been studied extensively in recent years. Based on analyzing the existing grid resource allocation algorithms, this paper gives out a novel grid resource allocation algorithm based on fuzzy clustering. The proposed algorithm subtly assigns appropriate resource to the very task that exactly satisfy itsÂ¿ needs for resource, while reserving the resources whose power greatly exceed the needs of current tasks for future use. By this way, our algorithm can effectively avoid assigning powerful resources to simple and medium scale tasks or assigning poor resources to complex large-scale tasks, for they may lead to misuse of resources and failure scheduling of tasks. The presented algorithm has high efficiency and good robustness and works better than other similar algorithms. Our work has provided a new approach for grid resource allocation.