This study aimed to construct a kernel Fisher discriminant analysis (KFDA) method from well logs for lithology identification purposes. KFDA, via the use of a kernel trick, greatly improves the multiclassification accuracy compared with Fisher discriminant analysis (FDA). The optimal kernel Fisher projection of KFDA can be expressed as a generalized characteristic equation. However, it is difficult to solve the characteristic equation; therefore, a regularized method is used for it. In the absence of a method to determine the value of the regularized parameter, it is often determined based on expert human experience or is specified by tests. In this paper, it is proposed to use an improved KFDA (IKFDA) to obtain the optimal regularized parameter by means of a numerical method. The approach exploits the optimal regularized parameter selection ability of KFDA to obtain improved classification results. The method is simple and not computationally complex. The IKFDA was applied to theIrisdata sets for training and testing purposes and subsequently to lithology data sets. The experimental results illustrated that it is possible to successfully separate data that is nonlinearly separable, thereby confirming that the method is effective.