A mobile terminal and controlling method thereof are disclosed, by which data can be conveniently shared between a terminal having a projector and an external device connected to the terminal. A mobile terminal includes a projector module configured to project an image onto an external surface, a wireless communication unit configured to establish a wireless connection for communicating with an external device, and a controller configured to display an icon in the projected image corresponding to the connected external device, receive an input selecting the displayed icon, execute a function related to the external device in response to the input, and direct a movement of an object displayed in the projected image according to a signal received from the connected external device.