ABSTRACT A direct approach to studying the galaxy–halo connection is to analyse groups and clusters of galaxies that trace the underlying dark matter haloes, emphasizing the importance of identifying galaxy clusters and their associated brightest cluster galaxies (BCGs). In this work, we test and propose a robust density-based clustering algorithm that outperforms the traditional Friends-of-Friends (FoF) algorithm in the currently available galaxy group/cluster catalogues. Our new approach is a modified version of the Ordering Points To Identify the Clustering Structure (OPTICS) algorithm, which accounts for line-of-sight positional uncertainties due to redshift space distortions by incorporating a scaling factor, and is thereby referred to as sOPTICS. When tested on both a galaxy group catalogue based on semi-analytic galaxy formation simulations and observational data, our algorithm demonstrated robustness to outliers and relative insensitivity to hyperparameter choices. In total, we compared the results of eight clustering algorithms. The proposed density-based clustering method, sOPTICS, outperforms FoF in accurately identifying giant galaxy clusters and their associated BCGs in various environments with higher purity and recovery rate, also successfully recovering 115 BCGs out of 118 reliable BCGs from a large galaxy sample. Furthermore, when applied to an independent observational catalogue without extensive re-tuning, sOPTICS maintains high recovery efficiency, confirming its flexibility and effectiveness for large-scale astronomical surveys.