Tissues in brain are the most complicated parts of our body, a clear examination and study are therefore required by a radiologist to identify the pathologies. Normal magnetic resonance (MR) scanner is capable of producing brain images with bounded tissues, where unique and segregated views of the tissues are required. A distinguished view upon the images is manually impossible and can be subjected to operator errors. With the assistance of a soft computing technique, an automated unique segmentation upon the brain tissues along with the identification of the tumor region can be effectively done. These functionalities assist the radiologist extensively. Several soft computing techniques have been proposed and one such technique which is being proposed is PSO‐based FCM algorithm. The results of the proposed algorithm is compared with fuzzy C‐means (FCM) and particle swarm optimization (PSO) algorithms using comparison factors such as mean square error (MSE), peak signal to noise ratio (PSNR), entropy (energy function), Jaccard (Tanimoto Coefficient) index, dice overlap index and memory requirement for processing the algorithm. The efficiency of the PSO‐FCM algorithm is verified using the comparison factors.