Data Preprocessing in Machine Learning: 11 Key Steps You Must Know!

By Kechit Goyal

Updated on Nov 11, 2025 | 33 min read | 162.48K+ views

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Data preprocessing in machine learning is the stage where raw, unstructured data is transformed into a clean, usable format that models can learn from. It includes essential steps such as handling missing values, encoding categorical variables, scaling features, and engineering new ones to enhance model accuracy and stability. Without proper preprocessing, even the best algorithms fail to deliver meaningful results.

In this guide, you’ll read more about the core data preprocessing steps, from data cleaning, integration, and encoding to feature scaling, dimensionality reduction, and feature engineering methods.

Want to strengthen your machine learning skills for effective data preprocessing and analysis? upGrad’s  AI Courses can equip you with tools and strategies to stay ahead in your career. Enroll today!

Data Preprocessing in Machine Learning: Key Steps

Every machine learning project depends on the quality of its data. Before algorithms can learn, that data must be organized, standardized, and refined. The process isn’t just about cleaning, it’s about shaping data for better accuracy, faster computation, and more reliable insights.

Let’s explore the 11 essential steps that define an effective preprocessing workflow.

1. Data Collection and Audit

Every machine learning workflow begins with collecting the right data. The quality of your data determines the quality of your results.
You can source data from databases, web APIs, sensors, surveys, or third-party repositories like Kaggle.

Once gathered, the first task is a data audit, an initial assessment of data structure, completeness, and quality. This involves:

  • Checking for missing or null values in columns
  • Identifying duplicates or inconsistencies across sources
  • Validating that data types match expectations (e.g., numeric fields not stored as text)
  • Spotting unusual values or anomalies

By performing an audit early, you get a clear understanding of the work needed before modeling begins.

Also Read: Data Collection Types Explained: Methods & Key Steps

2. Data Cleaning

Raw data often includes noise, errors, and incomplete information. Cleaning transforms this imperfect data into a reliable foundation.
The process typically involves:

a. Handling Missing Values

  • Deletion: Drop rows or columns with excessive missing data.
  • Imputation: Fill gaps with statistical measures like mean, median, or mode.
  • Model-based Imputation: Predict missing values using algorithms like KNN or regression.

b. Removing Duplicates
Use data manipulation libraries like Pandas (drop_duplicates()) to eliminate repeated rows.

c. Handling Outliers
Outliers distort averages and weaken models. Detect them using Z-score, IQR, or visualization, then decide whether to remove, cap, or transform them.

Problem

Example

Solution

Missing salary values Blank cells in “Salary” column Replace with median
Duplicate records Two entries with same ID Drop one copy
Extreme ages Age = 150 Remove or replace with upper limit

A thorough cleaning step ensures the dataset represents the real world accurately.

Also Read: Data Cleaning Techniques: 15 Simple & Effective Ways To Clean Data

3. Data Integration

Data rarely lives in one place. Projects often use multiple datasets that must be merged.
Data integration brings all these sources together into a single, consistent format.

Key tasks include:

  • Schema alignment: Match column names and data types across sources. 
  • De-duplication: Eliminate overlapping entries across datasets.
  • Conflict resolution: Resolve mismatches in data formats (e.g., “NY” vs “New York”).
  • Transformation: Convert units (like cm → inches) to maintain uniformity.

Source

Column Name

Format

Standardized As

Dataset A Gender M/F Male/Female
Dataset B DOB YYYY/MM/DD DD-MM-YYYY

Integration helps models learn from complete, consistent data instead of fragmented records.

Also Read: Data Modeling for Data Integration: Best Practices and Tools

4. Data Transformation and Encoding

Machine learning models cannot process text or categorical data directly. Transformation converts these into numeric form.

Encoding techniques:

  • Label Encoding: Assigns each category a number (e.g., Red=0, Blue=1). Best for tree-based models.
  • One-Hot Encoding: Creates binary columns for each category (e.g., Red=[1,0,0], Blue=[0,1,0]). Works well for linear models.
  • Ordinal Encoding: Suitable for ordered categories such as “Low,” “Medium,” “High.”

Also Read: Label Encoder vs One Hot Encoder in Machine Learning

For text data, preprocessing includes:

  • Lowercasing
  • Removing punctuation and stop words
  • Tokenization
  • Vectorization using TF-IDF or embeddings

Choose the encoding method that fits both your data type and chosen algorithm.

Also Read: A Guide on Handling Categorical Data in Machine Learning

5. Feature Scaling and Normalization

Data features can have different units and magnitudes, for example, “age” may range from 0 to 100, while “income” can be in thousands.
Scaling ensures all features contribute equally to the model.

Technique

Description

Best For

Standardization Scales values to have mean = 0 and std = 1 Linear Regression, SVM
Min-Max Scaling Rescales features to 0–1 range Neural networks
Robust Scaling Uses median and IQR; resistant to outliers Skewed data

Always perform scaling after splitting the data to avoid leakage.
This step improves model convergence and reduces bias toward large-scale features.

Also Read: Why Data Normalization in Data Mining Matters More Than You Think!

6. Feature Engineering

Feature engineering methods create new, informative variables that help the model capture deeper relationships in the data.
It requires creativity and domain knowledge.

Popular approaches:

  • Combining existing variables: e.g., Height and Weight → BMI.
  • Creating time-based features: e.g., Extract “Day,” “Month,” or “Hour” from a timestamp.
  • Binning: Convert continuous variables into ranges, like “Age groups.”
  • Interaction terms: Multiply or divide features that might interact.

After feature creation, use feature selection to keep only the most relevant ones. Techniques include:

  • Filter methods: Correlation, Chi-Square tests.
  • Wrapper methods: Recursive Feature Elimination (RFE).
  • Embedded methods: Lasso Regression, Decision Tree feature importance.

Thoughtful feature engineering boosts performance while simplifying models.

Also Read: Top 6 Techniques Used in Feature Engineering [Machine Learning]

7. Dimensionality Reduction

When you have hundreds or thousands of features, models can become slow and prone to overfitting.
Dimensionality reduction removes redundant variables while retaining essential information.

Common methods:

  • PCA (Principal Component Analysis): Converts correlated variables into a smaller set of uncorrelated components.
  • LDA (Linear Discriminant Analysis): Finds linear combinations that best separate classes.
  • Autoencoders: Use neural networks to compress and reconstruct data efficiently.

Reducing features simplifies training, speeds up computation, and often improves generalization.

Also Read: What is Dimensionality Reduction in Machine Learning? Features, Techniques & Implementation

8. Handling Imbalanced Data

In real-world datasets, one class may have far fewer samples than others — for example, fraud detection (fraudulent vs. non-fraudulent).
This imbalance causes the model to ignore minority classes.

Balancing strategies:

  • Oversampling: Replicate minority samples to increase representation.
  • Undersampling: Randomly remove samples from the majority class.
  • SMOTE (Synthetic Minority Oversampling Technique): Generates synthetic samples for the minority class.

Balanced data ensures the model learns patterns from both major and minor classes effectively.

Also Read: Detailed Guide on Dataset in Machine Learning: Steps to Build Machine Learning Datasets

9. Splitting Data

Before training, split your data into training, validation, and test sets to measure how well the model generalizes.

Dataset

Purpose

Typical Ratio

Training Used to fit the model 70–80%
Validation Used to tune parameters 10–15%
Test Used for final evaluation 10–15%

Always fit preprocessing transformations (like scaling and encoding) only on the training data and apply them to validation and test sets.
This prevents information from leaking into the model, which can inflate performance scores artificially.

10. Pipeline Construction

Manually repeating preprocessing steps can lead to errors. Pipelines automate and standardize the workflow.

Advantages of using pipelines:

  • Maintain a consistent order of transformations
  • Reduce manual coding errors
  • Simplify model deployment

Tools for pipeline creation:

  • Scikit-learn’s Pipeline for structured preprocessing
  • ColumnTransformer to handle different column types
  • FeatureUnion to combine multiple transformations

Pipelines make your preprocessing process reusable, traceable, and production-ready.

Also Read: Top 48 Machine Learning Projects [2025 Edition] with Source Code

11. Monitoring and Maintenance

Preprocessing doesn’t end once the model is deployed. Data can drift over time due to new behaviors, trends, or sources.

What to monitor:

  • Data drift: Changes in feature distributions over time.
  • Concept drift: Changes in relationships between features and target.
  • Pipeline consistency: Ensure new data passes through the same transformations.

Set up regular checks to detect these drifts early. If patterns shift, retrain both the preprocessing steps and the model.
This keeps your system reliable in dynamic environments.

Together, these 11 steps form the foundation of data preprocessing in machine learning. Following them ensures that your models are trained on clean, consistent, and well-structured data, the key to building accurate and dependable machine learning solutions.

Also Read: Top 25+ Machine Learning Projects with Source Code To Excel in 2025

Best Practices for Data Preprocessing in Machine Learning

Data preprocessing in machine learning is more than just a one-time setup, it’s a continuous, structured process that defines how your model interprets real-world information. Following a few key practices ensures accuracy, consistency, and scalability across every stage of model development.

1. Always Begin with Data Understanding

Before cleaning or transforming, analyze the dataset deeply.
Understand what each feature represents, identify data types, and look for potential sources of bias or inconsistency.
This step helps you decide which data preprocessing techniques in machine learning to apply later.

Also Read: Deep Learning Techniques: Methods, Applications & Examples

2. Handle Missing and Outlier Values Carefully

Do not rush to delete data. Evaluate why values are missing and whether they carry hidden patterns.

  • Use statistical imputation (mean, median, mode) for numeric data.
  • Replace outliers only if they result from recording errors, not natural variation.
  • Visualize outliers with boxplots to confirm their impact.

Good handling maintains balance between data integrity and model accuracy.

3. Keep Consistency Across All Data Splits

Ensure that every preprocessing step, scaling, encoding, and transformation, is applied consistently across training, validation, and test sets.
Fit transformations only on training data and reuse them on other sets.
This prevents data leakage, which can give misleadingly high accuracy during testing.

Also Read: Deep Learning Models: Types, Creation, and Applications

4. Document Each Preprocessing Step

Maintain detailed records of every operation performed on your dataset.
Include scripts, parameter choices, and reasoning behind each step.
This documentation allows easy debugging, auditing, and reproducibility, crucial for long-term projects and team collaboration.

5. Automate with Pipelines

Manual preprocessing is prone to errors and inconsistencies.
Build automated workflows using Scikit-learn Pipelines or ColumnTransformers.
Pipelines standardize your sequence of steps (cleaning → encoding → scaling → modeling) and make deployment seamless.

Automation also helps when retraining models with updated data.

Also Read: Automated Machine Learning Workflow: Best Practices and Optimization Tips

6. Apply the Right Scaling and Encoding Techniques

Not every dataset requires the same transformation.

  • Use Standardization when features follow a normal distribution.
  • Use Min-Max Scaling for neural networks or bounded data.
  • Apply One-Hot Encoding for categorical data without order.
  • Choose Ordinal Encoding only for ranked categories.

Selecting the correct data preprocessing steps ensures balanced and interpretable input features.

These six best practices make data preprocessing in machine learning efficient, transparent, and scalable. They help you build models that learn from clean, consistent, and up-to-date data—delivering results you can trust.

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Common Mistakes to Avoid in Data Preprocessing

Even small errors during data preprocessing in machine learning can lead to poor model accuracy, overfitting, or misleading results. Being aware of common mistakes helps you maintain data integrity and build reliable models. Here are the key pitfalls to watch out for.

1. Ignoring Data Leakage

Applying transformations like scaling, encoding, or imputation before splitting the dataset is a major mistake.
This causes the model to “see” parts of the test data during training, leading to inflated accuracy scores.
Fix: Always split your data first, then fit preprocessing steps only on the training set.

Also Read: Guide to Deploying Machine Learning Models on Heroku: Steps, Challenges, and Best Practices

2. Overlooking Missing and Outlier Values

Skipping a proper check for missing data or outliers leads to biased results.
Incomplete or extreme values can distort averages, weaken patterns, and confuse the algorithm.
Fix: Use appropriate imputation methods and visualize outliers before deciding whether to remove or cap them.

3. Inconsistent Encoding or Scaling

Applying different encoding or scaling techniques on separate datasets breaks consistency.
For example, if you use one-hot encoding differently on training and test sets, column mismatch errors will occur.
Fix: Fit all encoders and scalers once on training data, then reuse them on other sets.

4. Creating Too Many or Irrelevant Features

Adding features without checking their impact increases complexity and risks overfitting.
Unnecessary variables make the model memorize data instead of learning meaningful patterns.
Fix: Use feature selection methods like correlation analysis, Lasso, or tree-based importance scores to keep only valuable features.

5. Ignoring Imbalanced Data

Training on imbalanced datasets can make models biased toward the majority class.
This results in poor recall for minority outcomes, especially in fraud detection or medical diagnosis.
Fix: Apply balancing techniques like SMOTE, oversampling, or undersampling before training.

Also Read: Top 50 Python AI & Machine Learning Open-source Projects

Avoiding these mistakes keeps your data preprocessing steps efficient and error-free. Careful handling of data at this stage not only improves model performance but also saves time and effort in later development phases.

Tools and Libraries to Support Data Preprocessing 

Efficient data preprocessing in machine learning relies on the right tools and libraries. These tools simplify cleaning, transformation, encoding, and automation, saving time and ensuring consistency across projects. Whether you’re handling small datasets or processing data at scale, these are the most widely used and dependable options.

1. Python Libraries

Python dominates the machine learning ecosystem because of its versatile and well-supported data preprocessing tools.

Library

Key Features

Ideal For

Pandas Data cleaning, handling missing values, reshaping, and analysis using DataFrames. Tabular data manipulation.
NumPy Fast numerical computations and array-based operations. Mathematical transformations.
Scikit-learn Built-in preprocessing classes for scaling, encoding, imputation, and pipelines. End-to-end ML workflows.
Imbalanced-learn Tools for oversampling, undersampling, and SMOTE-based balancing. Handling imbalanced datasets.
Featuretools Automates feature creation through deep feature synthesis. Feature engineering.

These libraries integrate seamlessly, forming the backbone of most data preprocessing pipelines.

Also Read: Python Libraries Explained: List of Important Libraries

2. Big Data Frameworks

When datasets exceed the capacity of a single machine, distributed frameworks are essential. They process massive data efficiently across clusters.

Framework

Description

Use Case

Apache Spark (PySpark) Provides distributed data processing with MLlib for scalable preprocessing. Large-scale data and streaming tasks.
Dask Enables parallel computation on local or cluster environments. Medium to large datasets beyond memory limits.
Hadoop (MapReduce) Batch-processing framework for distributed data. Enterprise-scale, structured data.

These frameworks extend Python’s capabilities to high-performance environments.

Also Read: What is Big Data? Ultimate Guide to Big Data and Big Data Analytics

3. Cloud-Based Platforms

Modern data teams often use cloud tools for scalability, automation, and integration with machine learning pipelines.

  • Google Cloud DataPrep: Cleans, profiles, and transforms data with a visual interface.
  • AWS Glue: Serverless ETL service that automates schema discovery and transformation.
  • Azure Data Factory: Connects and processes data from multiple cloud and on-premise sources.
  • Databricks: Unified environment combining Spark with ML lifecycle tools.

Cloud preprocessing platforms are especially useful for enterprise workflows and collaborative projects.

Also Read: Cloud Computing Architecture: A Comprehensive Guide For Beginners

4. Visualization and Profiling Tools

Visualization helps you detect errors, missing values, and outliers early in the preprocessing stage.

Tool

Function

Benefit

Matplotlib Seaborn Create histograms, scatterplots, and correlation heatmaps. Spot data patterns and anomalies.
Sweetviz Auto-generates detailed EDA reports. Quick dataset summaries.
Pandas-Profiling (ydata-profiling) Produces HTML reports showing missing values, data types, and correlations. Rapid data assessment.

These tools make inspection and quality checks easier before transformations begin.

Also Read: How Does Data Visualization for Decision-Making Enhance Business? 10 Proven Strategies

5. Workflow and Automation Tools

To ensure reproducibility and efficiency, automation tools manage the entire preprocessing pipeline.

  • Airflow: Schedules and manages preprocessing workflows.
  • MLflow: Tracks data versions, parameters, and preprocessing experiments.
  • Prefect: Handles data tasks and orchestration for dynamic workflows.
  • Kedro: Combines modular pipelines with project organization best practices.

Automating preprocessing with these tools reduces human error and guarantees consistency between training and production.

The right tools make data preprocessing in machine learning scalable, faster, and more reliable.

Conclusion

Data preprocessing in machine learning is the foundation of every successful model. By following structured steps, cleaning, transforming, encoding, scaling, and feature engineering, you turn raw data into reliable input for algorithms. Each stage builds data quality, consistency, and accuracy, ensuring models learn effectively. When combined with proper automation, documentation, and monitoring, preprocessing becomes a continuous process that keeps your machine learning workflows efficient, scalable, and ready for real-world deployment.

Want to gain expertise in standard deviation ML in 2025? Reach out to upGrad for personalized counseling and expert guidance. You can also visit your nearest upGrad offline center to explore the right learning path for your goals.

Frequently Asked Questions (FAQs)

1. What is data preprocessing in machine learning?

Data preprocessing in machine learning is the process of converting raw, unstructured data into a clean and usable format. It involves data cleaning, transformation, scaling, and encoding to ensure machine learning models can learn efficiently and produce accurate predictions.

2. Why is data preprocessing important for machine learning models?

Data preprocessing is important because models depend on high-quality input. Clean, consistent, and normalized data helps reduce bias, avoid errors, and improve accuracy. Without proper preprocessing, models can misinterpret patterns and deliver unreliable results during training and prediction.

3. What are the main data preprocessing steps?

The main data preprocessing steps include data cleaning, handling missing values, encoding categorical features, scaling numerical variables, detecting outliers, and splitting datasets. Each step ensures the data is accurate, consistent, and properly structured for model training and evaluation.

4. What are common data preprocessing techniques in machine learning?

Common data preprocessing techniques in machine learning include normalization, standardization, encoding, feature scaling, imputation, and dimensionality reduction. These techniques prepare diverse data types and distributions so that algorithms can perform more efficiently and produce consistent, reliable outcomes.

5. How does data cleaning fit into data preprocessing in machine learning?

Data cleaning is the first step of data preprocessing in machine learning. It removes errors, duplicates, and inconsistencies while managing missing values. Clean data ensures algorithms focus on true patterns rather than noise or irrelevant information during model training.

6. What methods are used to handle missing data?

Missing data can be handled by deleting incomplete records or imputing values using statistical measures like mean, median, or mode. Advanced methods such as K-Nearest Neighbors (KNN) or regression imputation can also predict and fill missing values effectively.

7. What is the role of encoding in data preprocessing?

Encoding converts categorical variables into numeric values that machine learning algorithms can process. Techniques such as label encoding, one-hot encoding, and ordinal encoding help represent categorical data while preserving information and relationships between variables.

8. What is feature scaling and why is it needed?

Feature scaling standardizes the range of numerical variables to ensure fair model training. It prevents large-scale features from dominating smaller ones. Common scaling methods include Min-Max normalization, Standardization (Z-score), and Robust Scaling for datasets with outliers.

9. How do feature engineering methods improve model performance?

Feature engineering methods enhance model performance by creating new, informative features or modifying existing ones. Examples include interaction terms, polynomial features, or domain-driven variables. Effective feature engineering allows models to capture hidden relationships and improve predictive accuracy.

10. What is the difference between feature selection and feature engineering?

Feature engineering creates new features to enrich the dataset, while feature selection identifies and retains the most relevant ones. Selection methods like correlation analysis, Recursive Feature Elimination (RFE), or Lasso Regression help reduce noise and avoid overfitting.

11. How do you detect and handle outliers during preprocessing?

Outliers are detected using visualization tools or statistical methods such as Z-score and Interquartile Range (IQR). Depending on their impact, they can be removed, capped, or transformed. Handling outliers ensures model stability and prevents skewed learning.

12. What are dimensionality reduction techniques used for?

Dimensionality reduction techniques simplify datasets by removing redundant or less important features. Methods like Principal Component Analysis (PCA), Linear Discriminant Analysis (LDA), or Autoencoders reduce computation time while maintaining essential information for modeling.

13. How does data balancing affect machine learning models?

Imbalanced data can make models biased toward majority classes. Balancing techniques like oversampling, undersampling, or SMOTE generate balanced class distributions. This ensures fair learning and improves performance for both majority and minority categories.

14. What are preprocessing pipelines and why are they useful?

Preprocessing pipelines automate the sequence of data preprocessing steps. Tools like Scikit-learn Pipelines maintain consistency and reproducibility across training and test datasets. Pipelines reduce manual errors and simplify model deployment in production.

15. How can data preprocessing prevent model overfitting?

Proper preprocessing reduces noise, removes irrelevant features, and standardizes input data. This ensures models focus on meaningful patterns rather than random fluctuations, leading to better generalization on unseen data and reduced risk of overfitting.

16. What challenges occur during data preprocessing in machine learning?

Common challenges include handling missing data, managing high-dimensional features, addressing imbalance, and ensuring data consistency across sources. Efficient preprocessing frameworks and automated tools can help manage these challenges effectively.

17. How do feature engineering methods integrate with preprocessing?

Feature engineering works alongside preprocessing by transforming cleaned data into new, meaningful features. It typically follows encoding and scaling steps within the preprocessing pipeline, ensuring the newly engineered features are consistent and model-ready.

18. Which tools are used for data preprocessing in machine learning?

Popular tools include Pandas, NumPy, Scikit-learn, and Imbalanced-learn in Python. For large-scale data, Apache Spark, Dask, and Databricks are widely used. These libraries simplify data cleaning, encoding, scaling, and feature engineering processes.

19. How do you validate the effectiveness of preprocessing steps?

You can validate preprocessing by comparing model accuracy, F1-score, or RMSE before and after applying preprocessing steps. Improved consistency, reduced variance, and better model generalization indicate effective data preprocessing.

20. What are best practices for data preprocessing in machine learning?

Best practices include exploring data before cleaning, applying consistent transformations, automating workflows with pipelines, documenting every step, and monitoring for data drift. Following these practices ensures high-quality, reproducible preprocessing pipelines for long-term success.

Kechit Goyal

95 articles published

Kechit Goyal is a Technology Leader at Azent Overseas Education with a background in software development and leadership in fast-paced startups. He holds a B.Tech in Computer Science from the Indian I...

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