A watch type mobile terminal configured to be wearable on a wrist and a control method thereof are provided. The watch type mobile terminal includes a display unit configured to display screen information, a terminal body configured to allow the display unit to be installed therein and disposed on the wrist, a sensing unit configured to sense a position in which the mobile terminal is worn, and a controller configured to allocate a particular region of the display unit, as a control region for receiving a control command based on the sensing result, and process a user's touch input applied to the control region, as a control command for controlling an operation of the mobile terminal.