The new app has a 'Photos of You' section which feature pictures you've tagged yourself in and those you've been tagged in by other users.
The Facebook-owned company has achieved this by adding a new aspect to the upload process, facilitating photo-tagging.
The previous versions of the app have allowed users to mention their friends' username in photo captions - which sends a notification to the app - but before today those pictures have stayed within the photo stream of the uploader.
Now, Instagram said, tagging friends is as easy as adding captions and hashtags to photos and offers a new way 'to bring the new stories behind photos to life'.
Photos that have been tagged will now feature a Facebook like speech bubble identifying the person by the username associated with the account
In a post on the company blog, Instagram wrote: "Today, we’re excited to introduce Photos of You and bring you a new way to share and discover stories on Instagram. When you upload a photo to Instagram, you’re now able to add people as easily as you add hashtags. Only you can add people to your photos, so you have control over the images you share. And it doesn’t stop at people—you can add any account on Instagram, whether it’s your best friend, favorite coffee shop or even that adorable dog you follow.
"There will now be a Photos of You section on your profile. When someone adds you to a photo, you’ll receive a notification and the photo will appear in your Photos of You. Want to make sure you like the photo first? No problem: you can easily adjust your settings so nothing appears on your profile until you approve it. Before your Photos of You section is visible to other people, you’ll have until May 16th to play around and get used to the feature. You can find more information about how Photos of You works and how to control your visibility at help.instagram.com."
The new versions of Instagram are available to download from the Google Play Store and the Apple App Store from today.