An apparatus and a method for processing a character file of a wireless terminal having a character agent function are provided. The apparatus comprises a character memory for storing a character structure and character images. The character structure comprises a character type and character image information. The character image comprises at least one frame image. A controller performs the character agent function by processing character structure data and character image data stored in the character memory through analyzing a state of the wireless terminal. A display section displays the character structure and image information output from the controller.