A multimedia device and method of controlling a cursor thereof are disclosed, by which a frequency of the cursor can be increased without system extension. The present invention includes receiving a cursor display signal from an input device, generating a location information of a cursor and an image information of the cursor in accordance with the received cursor display signal, embedding the generated location information of the cursor in the video signal, and displaying the image information of the cursor based on the location information of the cursor embedded in the video signal.