Disclosed is a device and method for inputting characters or drawings on a mobile terminal using a virtual screen. To input characters or drawings through a virtual screen, the mobile terminal includes an electronic pen, a virtual screen generator, a position detector for detecting the electronic pen position, and a character recognition algorithm for recognizing a trail as a character. When a signal is input from the electronic pen, the mobile terminal detects the originating position of the signal and its trail. The mobile terminal recognizes the detected trail as a character and generates a virtual screen with the recognized character.