A digital camera with a viewfinder, an image displaying method on the viewfinder, and a photographing method with the digital camera are provided. The digital camera includes: a lens unit receiving the image light of an object and forming an image; a photoelectric conversion device converting the formed image into an electrical signal; a viewfinder changing the path of the light passing through the lens unit so that a user can observe the object; a special effect unit disposed in the path of light of the viewfinder and producing a special effect on an image to be displayed on the viewfinder; and a control unit connected to the photoelectric conversion device and the special effect unit and driving the special effect unit according to a selected special effect mode.