Provided are a mobile terminal for providing a one-time password (OTP) and an operation method thereof. The mobile terminal includes a first one-time password (OTP) generating module configured to provide identification information regarding each of a plurality of pieces of OTP data to a user, and output an OTP provided according to any one identification information selected by the user, and a second OTP generating module based on mobile trusted module (MTM) configured to transfer the identification information regarding each of the plurality of pieces of OTP data to the first OTP generating module according to a corresponding request from the first OTP generating module, generate an OTP by using OTP data corresponding to the selected identification information, and transfer the generated OTP to the first OTP generating module.