The purpose of this article is to apply the grey clustering method to the study of shape identification. In addition to the grey clustering method originally based on grey systems, we also introduce the development of an iterative calculation that is suitable for applications of shape identification techniques. The grey clustering method requires only one shape feature to calculate the results of cluster identification. In this approach, the calculation primarily uses iterative indices of grey clustering to determine the grey categories of the studied subjects by selecting the element with the maximum weighted vector value. Lastly, actual hardware is constructed and real objects are photographed combined with the iterative grey clustering calculation for grey categories of twelve principal shapes. The results appear to be not only time efficient, but present higher precision as well, with much higher identification rate than traditional grey clustering calculations.