Nowadays, cluster analyses are widely used in mental health research to categorize student stress levels. However, conventional clustering methods experience challenges with large datasets and complex issues, such as converging to local optima and sensitivity to initial random states. To address these limitations, this research work introduces an Improved Grey Wolf Clustering Algorithm (iGWCA). This improved approach aims to adjust the convergence rate and mitigate the risk of being trapped in local optima. The iGWCA algorithm provides a balanced technique for exploration and exploitation phases, alongside a local search mechanism around the optimal solution. To assess its efficiency, the proposed algorithm is verified on two different datasets. The dataset-I comprises 1100 individuals obtained from the Kaggle database, while dataset-II is based on 824 individuals obtained from the Mendeley database. The results demonstrate the competence of iGWCA in classifying student stress levels. The algorithm outperforms other methods in terms of lower intra-cluster distances, obtaining a reduction rate of 1.48% compared to Grey Wolf Optimization (GWO), 8.69% compared to Mayfly Optimization (MOA), 8.45% compared to the Firefly Algorithm (FFO), 2.45% Particle Swarm Optimization (PSO), 3.65%, Hybrid Sine Cosine with Cuckoo search (HSCCS), 8.20%, Hybrid Firefly and Genetic Algorithm (FAGA) and 8.68% Gravitational Search Algorithm (GSA). This demonstrates the effectiveness of the proposed algorithm in minimizing intra-cluster distances, making it a better choice for student stress classification. This research contributes to the advancement of understanding and managing student well-being within academic communities by providing a robust tool for stress level classification.