A method of displaying wallpaper and an apparatus for displaying wallpaper includes displaying an input image to be displayed on wallpaper as a background image and a wallpaper displaying frame containing the entire image or a part of the input image on a wallpaper setting window, modifying a wallpaper displaying frame area according to a user's instruction, and displaying the modified frame area on the wallpaper. The apparatus for displaying wallpaper includes an application unit that displays an input image to be inputted as a background image for wallpaper and a wallpaper displaying frame containing the entire input image or a part of the input image on a wallpaper setting window, a modification unit that modifies a wallpaper displaying frame area specified by the application unit according to a user's instruction, and a wallpaper displaying unit that displays the frame area modified by the modification unit on the wallpaper.