Performance of ad hoc networks dramatically declines as network grows. Cluster formation in which the network hosts are hierarchically partitioned into several autonomous non‐overlapping groups, based on proximity, is a promising approach to alleviate the scalability problem of ad hoc networks. In this paper, we propose a localized learning automata‐based clustering algorithm for wireless ad hoc networks. The proposed clustering method is a fully distributed algorithm in which each host chooses its cluster‐head based solely on local information received from neighboring hosts. The proposed algorithm can be independently localized at each host. This results in a significantly reduction in message overhead of algorithm, and allows cluster maintenance can be locally performed only where it is ...