An apparatus and method for adjusting a display of a portable electronic device having a display unit are provided. The method includes detecting a user's touch of the portable electronic device, determining touch information including at least one of a location and an area of the user's touch on the display unit, determining whether the user's touch is a touch input for executing an operation on the portable electronic device or a user's gripping of the portable electronic device according to the touch information, and adjusting the displaying of a User Interface (UI) according to the user's gripping of the portable electronic device, wherein an entirety of an outward facing surface of the display unit is touch-enabled so as to receive a touch input of a user at any point of the outward facing surface.