A channel estimation method and apparatus using a self-tracking algorithm is provided for improving channel estimation accuracy. The channel estimation apparatus of a mobile terminal includes a receiver for converting a received radio signal into a baseband signal, a match filter for converting the baseband signal into a digital signal including at least two samples, a channel estimator for buffering the samples, for analyzing multipath signals to predict a maximum power position and multipath energy, and for estimating a channel by selecting a multi-tap at the maximum power position through a slew control, an equalization controller for calculating an equalization tap gain using the multi-tap selected by the channel estimator,; and an equalizer for compensating for distortion in the samples output by the channel estimator using the equalization tap gain calculated by the equalization controller.