A hierarchical clustered BitTorrent (CBT) system is proposed to improve the file sharing perior-mance of the BitTorrent system, in which peers are grouped into clusters in a large-scale BitTorrent-hke underlying overlay network in such a way that clusters are evenly distributed and that the peers within the cluster are relatively close to each other. A fluid model is developed to compare the performance of the proposed CBT system with the BitTorrent system, and the result shows that the CBT system can effectively improve the performance of the system. Simulation results also demonstrate that the CBT system improves the system scalabihty and efficiency while retaining the robustness and incentives of the original BitTorrent paradigm.