Abstract: To solve the problem of co-channel interference and excessive energy consumption when D2D communication was used to LTE network, an algorithm of joint power control and resource allocation was proposed in this research. Firstly, in order to reduce the interference between the users and improve the system throughput, a resource allocation algorithm was proposed based on fuzzy clustering, D2D users were divided into several D2D user groups based on minimum outage probability to research optimal cellular user resource for each D2D user group. Secondly, an effective power control scheme was proposed to regulate the transmission power of D2D users in the D2D user group, which improved the energy efficiency of the system. Simulation results show that the proposed algorithm can reduce the system interference, improve the system throughput and system energy efficiency, and ensure the fairness of D2D users to access the radio resources.