Techniques for license reconciliation with multiple license types and restrictions. A method includes grouping a collection of multiple software installation instances, a collection of multiple hardware devices and a collection of multiple software licenses into multiple clusters, generating a reconciliation matrix for each cluster, wherein each row in the reconciliation matrix represents a software installation instance or a hardware device, each column in the reconciliation matrix represents a license type and/or an individual license, and each cell in the reconciliation matrix represents a license requirement and applicability of each software installation instance or hardware device, solving each reconciliation matrix, and generating a license reconciliation plan based on the solved reconciliation matrices.