Councillor Alan Mosley, who was re-elected as the representative for Castlefields in this month's election, was selected again as the group's leader.
The group's deputy will be a new face on the council, Councillor Julia Buckley, fresh from her success in Bridgnorth, where she claimed a Bridgnorth West and Tasley seat previously belonging to the Conservatives.
Councillor Buckley, a former parliamentary candidate, is one of three new Labour members along with Rosemary Dartnall who was elected in Bayston Hill, Column and Sutton, and Caroline Bagnall, who won the Broseley division.
Councillor Mosley said they were pleased at their performance in the election, gaining three seats on their previous tally.
He said the focus would now be scrutiny on the council's conservative administration – and opposition to Shrewsbury's North West Relief Road, a project seen as one of the key battlegrounds in the the election.
Councillor Mosley said: “Labour is extremely pleased with the results of the election which so clearly bucked the national trend with all sitting councillors returned plus three very able newcomers.
"It’s also great that market towns outside Shrewsbury are represented with Broseley regained by Caroline and Julia winning in Bridgnorth.
"Even where we didn’t win this time round the results showed very significant gains in the Labour vote. These results were obviously a consequence of very hard work within their communities by very capable people showing that they care and have plans for a better way forward for their area and for Shropshire.
"It also shows that increasing numbers recognise the incompetence of Tory administrations in Shropshire and the devastating impact of cuts imposed by the current government. Early action will include close scrutiny of finances, bolstering the council’s policy on climate change across the county and opposition to the Shrewsbury North West Relief Road."
He added that Councillor Buckley would also be a potential future leader of the group, saying: "I’m delighted that Julia will take on the Deputy role after her stunning success in Bridgnorth. She will be an excellent, very prominent councillor and more than able to take on the leader role when the time comes.”
Councillor Buckley said: “Everyone is Bridgnorth is delighted to have a new strong voice at Shirehall and I am looking forward to delivering for our much-overlooked residents.
"I’m thrilled to join my experienced colleagues in the Shropshire Labour Group, and feel honoured to be chosen as deputy leader. Together we are going to be a dynamic force for change across the county, and hold this chaotic Conservative administration to account.”