A method and apparatus for overlaying broadcast video with application graphics in a digital TV having an application-execution function are provided. The apparatus includes a decoding unit which decodes a received digital broadcast signal and outputs a video signal, a memory unit which stores graphic data used for the application, and an embedded central processing unit (CPU) comprising a video processor which overlays the video signal directly received through a dedicated input port from the decoding unit with the graphic data stored in the memory unit, so that the overlaid result makes one screen.