An unmanned aerial vehicle is provided. The unmanned aerial vehicle includes a housing with a first housing structure and a second housing structure, a wireless communication circuit coupled to the housing or located inside the housing for wireless communication with an external controller, a plurality of propulsions systems coupled to the housing, and a navigation circuit configured to control the plurality of propulsion systems. At least one of the plurality of propulsion systems includes a plurality of folding arms pivotally coupled to one of the first housing structure and the second housing structure, a motor controlled by the navigation circuit, and a propeller coupled to the motor. The housing has at least one recess to accommodate at least part of the plurality of propulsion systems in the second state.