In this paper, we propose a novel hybrid topology and interest based clustering to organize the overlay network in order to reduce startup latency and service interruption probability. Our method uses a clustering technique to organize the peers according to their interests and locality information. The proposed technique is compared with the current unstructured P2P architectures in terms of average hit time, hit ratio for searched content, and the maximum rate of information (in bits per second) that can be transmitted over P2P network caused by protocol and overlay-level connectivity. The simulation results show that the proposed system outperforms the current unstructured P2P architectures.