Police have worked with a housing association to run the project on the Beechfarm Estate in Swinton.
The government plans to ban the sale of so-called legal highs, which would include nitrous oxide - also known as "hippy crack" - for human use.
Health experts warn the gas can have dangerous side effects if inhaled.
The art project, to run during the summer holidays, will use the containers to create decorative tiles in Margaret's Garden, Kingsley Road.
PC Iain Fletcher said: "We hope this arts project will help us educate the young people in Salford that the abuse of nitrous oxide is not as safe as they may think it is."
Last year, seized cannabis plant pots recovered during a drugs raid were decorated and reused "to brighten up the estate", Salix Homes said.
Lee Sugden, from the housing association, said: "We hope this arts project will make young people aware of the dangers and help us turn a negative into a positive by putting the remnants of drug abuse to good use."
Hundreds of discarded laughing gas cylinders in Salford are being turned into public art to "highlight the dangers" of young people inhaling it.