One technology candidate to support the next phase of cellular communication networks is device-to—-device (D2D) communication. D2D can increase the system capacity and frequency resources’ efficiency. Usually, D2D shares frequency channels with conventional cellular users or performs in-band underlaying, which can generate co-channel interference issues between these two types of users. This work provides a D2D user (DUEs) clustering method based solution to lower interference among DUEs. DUEs are subjected to a clustering technique whereby several frequency channels are allocated in a group to minimize the interference effects experienced. Therefore, it is expected that this suggested approach will enable D2D and cellular users to have improved signal quality with lowest interference effects. Two systems—that of the conventional/baseline system and the one using the suggested clustering technique—have been under evaluation. The SINR (Signal to Interference plus Noise Ratio) values and performance for the proposed system compared to the baseline system have improved, according the simulation results. The obtained SINR values for the baseline system are 16.8 dB and for the proposed system are 17.68 dB, so improving the system by 5.4%. Applying the suggested clustering technique thus helps to raise acceptance of the intended signals for the observed DUEs. After that, the throughput value rises by 5%, from 56.17 to 59 Mbps, which the system with the suggested clustering approach offers a better rise in data transmission speed than the baseline system.