The present invention provides a mobile terminal and a panorama capturing method thereof. A method of controlling a mobile terminal, and which includes displaying a camera preview on a display of the mobile terminal; selecting an object to capture in the camera preview; displaying a capture guide on the display indicating a subsequent capturing region along a moving direction of the selected object; and capturing, via a controller of the mobile terminal, a panoramic image including a moving path of the object in the camera preview when the mobile terminal is moved so the camera preview substantially aligns with the capture guide within a predetermined amount.