"From math equations swirling around your head to furry koala ears that move and twitch, you can transform into a variety of characters that make you smile or laugh. To see our initial set of eight face filters, simply open the camera and tap the new face icon in the bottom right corner," the company said in a blog post.
Instagram also rolled out creative tools in the camera. Users can now make videos that play in reverse with "Rewind", a new camera format next to "Boomerang" and "Hands-Free".
Users can also add more context to story with a new hashtag sticker. Just tap the sticker icon at the top right of screen, select and customise the hashtag, then add it to story.
Like with mentions, users can add hashtags using regular text as well. People watching your story will be able to tap the hashtag sticker or text to visit the hashtag page and explore related posts.
Lastly, users will see a new eraser brush when using drawing tools. After taking a photo or video, select a drawing tool and tap and hold to fill the entire screen with colour. Then, using the eraser brush, creatively reveal parts of photo or video underneath.
"These updates are available as part of Instagram version 10.21 for iOS in the Apple App Store and for Android in Google Play," the blog post added.