Yes, but you won't be happy. You have to scroll back and flag all your pics as belonging to one folder or another. For example, I couldn't use pictures not in folders for wallpaper. I made a folder called wallpaper, then had to manually pick out every one I wanted to put in the folder. Now "it just works."
Somebody (maybe not just one) needs to get canned for iOS 8. It's like maps, but all across the UI.