Provided is an apparatus and a method for selecting a menu in a portable terminal. The portable terminal includes a first input means that can be rotated stepwise by a predetermined angle, a second input means that can be continuously rotated and pressed, and a controller for providing a menu list corresponding to the rotation direction of the first input means and the number of steps of rotation of the first input means, changing the position of a cursor on the menu list according to the rotation direction and the rotation degree of the second input means, and performing an operation corresponding to a menu in which the cursor is located when the second input means is pressed.