The company's first reveamp since 2009.
Yahoo has unveiled a redesigned home page, which incorporates features similar to Facebook.
The revamp, which is the first since 2009, will allow users to log in with their Facebook IDs to gain access to content and information shared by friends.
Yahoo CEO, Marissa Mayer, said: "Designed to be more intuitive and personal, the new Yahoo! experience is all about your interests and preferences."
"Since streams of information have become the paradigm of choice on the web, we're introducing a newsfeed with infinite scroll, letting you experience a virtually endless feed of news articles," Mayer said.
"The new Yahoo! experience works well on the go -- we've optimized it for smartphones and tablets. And, thanks to some under-the-hood improvements, Yahoo! is also faster."
The revamp follows a new version of Yahoo's Web email, which was released in December last year for smartphones and tablets.
The company said it is planning to make more changes and improvements over the coming months.
Earlier this month, Yahoo signed a global agreement with Google for contextual advertisements on some of its websites in order to generate more revenues.
Yahoo reported a 2% rise in its revenue to $1.35bn for the fourth quarter of 2012, compared to $1.32bn it reported for the corresponding quarter in 2011.
Yahoo had 184.9 million visitors to its sites in December 2012.