An electronic device and a method of operating a panorama function in the electronic device are provided. The electronic device includes at least one processor, a memory, a camera configured to sequentially obtain a plurality of images if an image capture is started, and a sensor configured to sense motion of the electronic device. The at least one processor is configured to store in the memory a panorama content file comprising panorama image data and dynamic panorama data generated based on the plurality of images and the motion of the electronic device sensed during the image capture.