A method of category-based clustering of a digital photo album and a system thereof, the method includes: generating photo information by extracting at least one of camera information of a camera used to take a photo, photographing information, and a content-based feature value including at least one of color, texture, and shape feature values, and a speech feature value; generating a predetermined parameter including at least one of user preference indicating the personal preference of the user, photo semantic information generated by using the content-based feature value of the photo, and photo syntactic information generated by at least one of the camera information, the photographing information, and interaction with the user; generating photo group information categorizing photos by using the photo information and the parameter; and generating a photo album by using the photo information and the photo group information. According to the method and system, by using together user preference and content-based feature value information, such as color, texture, and shape, from the contents of photos, as well as information that can be basically obtained from photos, such as camera information and file information stored in a camera, a large volume of photos are effectively categorized such that an album can be fast and effectively generated with photo data.