Data on diseases are generally skewed towards either positive or negative cases, depending on their prevalence. The problem of imbalance can significantly impact the performance of classification models, resulting in biased predictions and reduced model accuracy for the underrepresented class. Other factors that affect the performance of classifiers include intrinsic data characteristics, such as noise, outliers, and within-class imbalance, which complicate the learning task. Contemporary imbalance handling techniques employ clustering with SMOTE (Synthetic Minority Oversampling Technique) to generate realistic synthetic data that preserves the underlying data distribution, generalizes unseen data and mitigates overfitting to noisy points. Centroid-based clustering methods (e.g., K-means) often produce synthetic samples that are too clustered or poorly spaced. At the same time, density-based methods (e.g., DBSCAN) may fail to generate sufficient meaningful synthetic samples in sparse regions. The work aims to develop nature-inspired clustering that, combined with SMOTE, generates synthetic samples that adhere to the underlying data distribution and maintain sparsity among the data points that enhance performance of classifier. We propose PC-SMOTE, which leverages Percolation Clustering (PC), a novel clustering algorithm inspired by percolation theory. The methodology of PC utilizes a connectivity-driven framework to effectively handle irregular cluster shapes, varying densities, and sparse minority instances. The experiment was designed using a hybrid approach to assess PC-SMOTE using synthetically generated data with variable spread and other parameters; second, the algorithm was evaluated on eight sets of real medical datasets. The results show that the PC-SMOTE method works excellently for the Breast cancer dataset, Parkinson's dataset, and Cervical cancer dataset, where AUC is in the range of 96% to 99%, which is high compared to the other two methods. This demonstrates the effectiveness of the PC-SMOTE algorithm in handling datasets with both low and high imbalance ratios and often demonstrates competitive or superior performance compared to K-means and DBSCAN combined with SMOTE in terms of AUC, F1-score, G-mean, and PR-AUC.