This paper follows the program of study initiated by S. Fomin and A. Zelevinsky, and demonstrates that the homogeneous coordinate ring of the Grassmannian $\mathbb{G}(k, n)$ is a {\it cluster algebra of geometric type}. Those Grassmannians that are of {\it finite cluster type} are identified and their cluster variables are interpreted geometrically in terms of configurations of points in $\mathbb{C}\mathbb{P}^2$.