Users will see a "live video icon" in their status update area. You can write a description and choose who you want to see the broadcast such as just friends or the public. The number of live viewers, names of friends tuning in and a real-time stream of comments will also be shown. The video will then be saved on your timeline once the live stream ends.
Live-streaming apps Meerkat and Periscope made a splash this year and Twitter bought the latter in March.
While Periscope is still a separate app and still not integrated with Twitter, Facebook is hoping to differentiate itself by building its live-streaming service within its app.
Facebook's move also ties in with its broader push into video. Chief executive Mark Zuckerberg recently said that it would eventually give video content creators a revenue share of video views, in a bid to get more people making video on the social network.