An extended home service apparatus and a method of provided an extended home service capable of easily developing an application service based on a peer-to-peer (P2P) network are provided. The extended home service apparatus for providing an extended home service to a user in a P2P network in which a plurality of peer terminals provided with the extended home service apparatuses are connected to each other via a virtual home network, the extended home service apparatus comprising: a middleware which manages a protocol for communication with other peer terminals and providing the extended home service on the P2P network; a peer/peer group management service module which manages information on the peers and information on peer groups by using the protocol managed by the middleware and communicates with other peer terminals activated on the P2P network; a basic service module which generates and manages information on services which are to be provided to the user; and an application service module which provides an interface to the user and the other peer terminals by using the protocol managed by the middleware, calls a service requested by the user from the basic service module, and provides the service to the user. Accordingly, users can be rapidly provided with various contents and services anytime, anywhere via a virtual home network.