An apparatus and method for displaying a moving picture in a portable terminal capable of playback of moving pictures. The apparatus and method comprise inputting text to be displayed, storing it as a text file and selecting a moving picture file to be linked with the text file so as to set a text file to be replayed simultaneously with playback of the moving picture; executing a moving picture mode via operating keys when the portable terminal is in a stand-by mode, determining whether a moving picture playback mode is selected, and displaying a list of stored moving picture files when the moving picture playback mode is selected; and selecting a moving picture file to be replayed from the list of moving picture files so that the text file can be replayed and displayed simultaneously with playback of the moving picture.