An electronic device and a method of operating a nearby function of the electronic device is provided. The electronic device includes a low-power short-range communication module configured to perform a scanning operation and to collect advertising information as a result of the scanning operation, a display module configured to display an item for performing at least one of a short range communication connection and a remote communication connection with at least one reception-side device corresponding to the collected advertising information, and a control module configured to control the scanning operation of the low-power short-range communication module and the displaying of the item for performing the at least one of the short range communication connection and the remote communication connection with the at least one reception-side device corresponding to the collected advertising information.