A new feature allows up to 50 users to contribute up to 200 pictures to one collection.
The rules mean up to 10,000 photos can be stored in albums where previously the limit stood at 1,000.
"Hundreds of millions of photos are uploaded onto Facebook each day and today, we're making it even easier for friends to share photos with the roll-out of Shared Photo Albums," Facebook said.
"Whether you're at a wedding, birthday party, or fresh off of a trip, all your friends will be able to add photos, tag photos and edit just one album."
Users will be able to modify their settings if they want to restrict albums so just friends can view them.
Those contributing to an album will be able to add and tag photos, edit the collection and add contributors. They will also be able to edit or add information to the pictures they upload, such as changing the location or date.
Facebook said contributors would not be able to modify photos added by the original "owner" of the album or another contributor.