A mobile terminal and personal information protection method thereof using a protection function shortcut key are provided. The personal information protection method determines, when at least one key is input, whether the key is substantially identical with one of a plurality of protection function shortcut keys, displays, when the input key is substantially identical with a protection function shortcut key, a protection function setting menu having at least one item of personal information, sets, when at least one item of personal information is selected, the protection function in association with the selected personal information, and enables the protection function on the selected personal information. Therefore, the personal information protected by the protection function is not displayed on a display unit of the mobile terminal.