In this paper, an amended K-Means algorithm called K-Means++ is implemented for color quantization. K-Means++ is an improvement to the K-Means algorithm in order to surmount the random selection of the initial centroids. The main advantage of K-Means++ is the centroids chosen are distributed over the data such that it reduces the sum of squared errors (SSE). K-Means++ algorithm is used to analyze the color distribution of an image and create the color palette for transforming to a better quantized image compared to the standard K-Means algorithm. The tests were conducted on several popular true color images with different numbers of K value: 32, 64, 128, and 256. The results show that K-Means++ clustering algorithm yields higher PSNR values and lower file size compared to K-Means algorithm; 2.58% and 1.05%. It is envisaged that this clustering algorithm will benefit in many applications such as document clustering, market segmentation, image compression and image segmentation because it produces accurate and stable results.