Instagram co-founder Kevin Systrom says users will be able to record 15-second clips by tapping a video icon on the app. They can also apply filters to the videos to add contrast, make them black and white or different hues.
Vine, which launched in January, has 13 million users. Instagram has 100 million users, up from 20 million when Facebook bought the company more than a year ago.
If users like it, Facebook's move could propel mobile video sharing into the mainstream.