: Image segmentation plays a crucial role in many medical imaging applications. In this paper, we present a novel algorithm for fuzzy segmentation of magnetic resonance imaging (MRI) data. The algorithm is realized by modifying the objective function in the conventional fuzzy C-means (FCM) algorithm using a kernel-induced distance metric and a spatial penalty on the membership functions. Firstly, the original Euclidean distance in the FCM is replaced by a kernel-induced distance, and thus the corresponding algorithm is derived and called as the kernelized fuzzy C-means (KFCM) algorithm, which is shown to be more robust than FCM. Then a spatial penalty is added to the objective function in KFCM to compensate for the intensity inhomogeneities of MR image and to allow the labeling of a pixel to be influenced by its neighbors in the image. The penalty term acts as a regularizer and has a coefficient ranging from zero to one. Experimental results on both synthetic and real MR images show th...