Abstract: A vast majority of web services exist without explicit associated semantic descriptions. As a result many services that are relevant to a specific user service request may not be considered during service discovery. In this paper, we address the issue of web service discovery given no explicit service description semantics that match a specific service request. Our approach to semantic based web service discovery involves semantic-based service categorization and semantic enhancement of the service request. We propose a solution for achieving functional level service categorization based on an ontology framework. Additionally, we utilize clustering for accurately classifying the web services based on service functionality.