A mobile terminal and controlling method thereof are disclosed, which facilitates a terminal to be used in further consideration of user's convenience. The present invention includes sensing a humidity through a humidity sensor, receiving an AP (access point) location information through a wireless communication unit if a variation amount of the sensed humidity per unit time is equal to or greater than a prescribed value, determining whether a current location is an indoor space or an outdoor space based on the received AP location information, and activating a function of indoor location measurement if the determined location is the indoor space. The present invention determines a timing point of an outdoor-to-indoor or indoor-to-outdoor location shift of a mobile terminal and then activates an indoor location measuring function based on the result of the determination.