The 'Little Lovelyland Library' has been created by social enterprise Lovelyland which works creatively with schools and community groups to encourage better use of outdoor spaces.
The library will be open from Monday when locals can borrow and return an array of quality children's books as well as donate their own pre-loved books.
It is located at Castlefields Community Centre and there is already plans to open more little libraries across the town in the future.
Clare Butcher of Lovelyland said: "It's designed to be really easy. Local people visit the box at anytime, borrow a book for as long as they like and then bring it back.
"It's our hope that the Little Lovelyland Library will bring people together through the joy of reading."
Anyone can get involved by borrowing books and bringing them back, donating good quality children's books of their own by leaving them in the box, join the volunteer group or donate wall space for future Little Lovelyland Libraries.
The library venture has been supported by Shrewsbury Town Council and Button and Bear bookshop.
Alan Mosley, leader of Shrewsbury Town Council, said: "I am delighted to be able to support this Lovelyland project through the town council's Local Member Grant Fund.
"Already they have had great success in and around Castlefields with projects on arts, crafts and wildlife for residents of all ages.
"I'm sure that this will be a great success and further add to the real sense of community here.”
Lovelyland will run a programme of activities to complement the library including storytelling, themed library additions and workshops.
To find out more, join the Little Lovelyland Library Facebook group or email firstname.lastname@example.org
Others can support the project by visiting www.buttonandbear.co.uk/lovelyland