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The operation of instance-based learning algorithms is based on storing a large set of prototypes in the system's database. However, such systems often experience issues with storage requirements, sensitivity to noise, and computational complexity, which result in high search and response times. In this brief, we introduce a novel framework that employs spectral graph theory to efficiently partition the dataset to border and internal instances. This is achieved by using a diverse set of border-discriminating features that capture the local friend and enemy profiles of the samples. The fused information from these features is then used via graph-cut modeling approach to generate the final dataset partitions of border and nonborder samples. The proposed method is referred to as the spectral instance reduction (SIR) algorithm. Experiments with a large number of datasets show that SIR performs competitively compared to many other reduction algorithms, in terms of both objectives of classification accuracy and data condensation.