A mobile terminal and an application icon moving method thereof are provided. When a predetermined application icon is selected from a menu screen including a plurality of application icons and moved to a control region, a default home screen or the whole home screen stored in a memory may be selectively displayed according to a moved position of the corresponding icon, and also an icon-insertable position may be visually guided on the displayed home screen. This may allow a user to execute the movement of the application icon in an easy, convenient manner.