Clarke accepted the honour on Thursday, nearly a decade after he closed the chapter on his remarkable playing career.
The 43-year-old is the 64th inductee to the Hall of Fame, with two further members to be named this season.
Making his first-class debut for NSW at 17, Clarke captained Australia to victory in the 2015 ICC World Cup and led the side across 47 of his 115 career Tests.
The middle-order batsman burst onto the scene during Australia's 2004 tour of India, crowned the player of the match in Bengaluru after scoring 151 runs in the first innings of his debut.
So prolific was Clarke that he became the sixth Australian to score a Test triple-century after posting an unbeaten 329 against India at the SCG across the 2011/12 series.
It was in 2011 when Clarke succeeded all-time great Ricky Ponting as captain.
He followed up his SCG performance with a double century in the fourth Test against India, before notching two further double centuries against South Africa the following season.
At his peak, the Sydney local was ranked the best batsman in the world.
Clarke was also at the helm for the Ashes whitewash in 2013-14 and retired at the end of the lost 2015 campaign in England.
Australian Cricket Hall of Fame chairman Peter King praised Clarke as a player who "defined his generation".
"Michael's extraordinary first-class playing career started at just 17 at the SCG - the place where many of his highlights occurred, including a Test triple century against India in 2012," King said in a statement.
"Michael's career will forever be remembered fondly by the Australian public and his standing held alongside those at the upper echelon of our game.
"More than that, Michael was an exceptional leader of our men's Test and ODI teams who had a sustained period of success under his captaincy."
Clarke also proved capable as an occasional off-spinner.
It was his run of 3/5 in 1.5 overs in 2008 against India that helped Australia retain the Border-Gavaskar Trophy and extend their winning streak to 16 Tests.
Clarke, in his 2004 debut series, took six wickets for nine in Mumbai - the best haul in his Test bowling career.
29°C