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The video screen can be popped out of the chat box and moved around a user's computer screen. Users can also change the size of the screen and expand it to full-screen size.
"The idea was to make it quicker and easier to communicate with other people by whatever means is best convenient," said Google spokesman Jason Freidenfelds.
"It's a nice alternative for businesses looking for another way for people to connect," he added.
The feature is available for both PC and Apple computer users.
A webcam and small web browser plug-in are required to use the video chat. Users who do not have a webcam will still be able to chat with friends by voice.
Have you tried the application? Is it anything like Skype? Share your Gmail experience with us, in the box below.
