Web Services are one of the fastest growing areas of information technology in recent years, also being a main motivating factor for internet computations in which, one of the services being, service discovery. Web service discovery is the process of finding appropriate services for the user defined tasks.Web Service clustering is a technique for efficiently facilitating service discovery. Most Web Service clustering approaches are based on suitable semantic similarity distance measure and a threshold. Threshold selection is essentially difficult and often leads to unsatisfactory accuracy. In this paper, a self-organizing based clustering algorithm called Taxonomy based clustering for taxonomically organizing semantic Web Service advertisements. A query matching method is also applied on these clusters to get more accurate and relevant results based for user requests. The system is tested and observed promising results both in terms of accuracy and performance. © 2005 - 2013 JATIT & LLS. All rights reserved.