Abstract Modal parameter estimation requires a lot of user interaction, especially when parametric system identification methods are used and the modes are selected in a stabilization diagram. In this paper, a fully automated, generally applicable three-stage clustering approach is developed for interpreting such a diagram. It does not require any user-specified parameter or threshold value, and it can be used in an experimental, operational, and combined vibration testing context and with any parametric system identification algorithm. The three stages of the algorithm correspond to the three stages in a manual analysis: setting stabilization thresholds for clearing out the diagram, detecting columns of stable modes, and selecting a representative mode from each column. An extensive validation study illustrates the accuracy and robustness of this automation strategy.