The US-based firm had earlier in May put a temporary ban on films of decapitation on its site after it received complaints that it could cause long-term psychological damage, BBC reported Tuesday.
David Cameron condemned the company's decision, terming it as irresponsible
However, the company has now said its users should be able to watch such videos as long as they condemn and not celebrate these videos.
The US firm confirmed it now believed its users should be free to watch and condemn such videos. It added that it was, however, considering adding warnings.
The networking website is open to anyone who is aged 13 or above.
The company, in a statement, said it was allowing such content to be posted again.
"Facebook has long been a place where people turn to share their experiences, particularly when they're connected to controversial events on the ground, such as human rights abuses, acts of terrorism and other violent events," BBC quoted a company spokesperson as saying.
"People are sharing this video on Facebook to condemn it. If the video were being celebrated, or the actions in it encouraged, our approach would be different.
"However, since some people object to graphic video of this nature, we are working to give people additional control over the content they see. This may include warning them in advance that the image they are about to see contains graphic content," the statement added.
British Prime Minister David Cameron condemned the company's decision, terming it as irresponsible.
"It's irresponsible of Facebook to post beheading videos, especially without a warning. They must explain their actions to worried parents," the prime minister has tweeted.