A method of managing files in a Web-based Distributed Authoring and Versioning (WebDAV)-embedded image forming apparatus and an image forming apparatus that performs the method. The method includes receiving a connection request from the WebDAV client to manage at least one of a file and a directory stored in a storage unit of the image forming apparatus; receiving login information from the WebDAV client, authenticating the received login information of the WebDAV client, receiving a WebDAV command to control the at least one of the file and the directory from the authenticated WebDAV client, and executing a process with respect to the at least one of the file and the directory with reference to the received WebDAV command.