A mobile terminal capable of digital broadcast reception and supports a touch screen function, and a picture-in-picture (PIP) display control method for the mobile terminal. The PIP display control method includes processing a received digital broadcast signal into channel signals of individual channels, displaying video data of a selected channel signal on a main screen occupying an entire display area, and displaying video data of another selected channel signal on a sub-screen in the main screen; checking whether a touch event occurs to one of the main screen and the sub-screen; displaying control icons on one of the touched main screen and the touched sub-screen when a touch event occurs to one of the main screen and the sub-screen; and controlling digital broadcasts on channels associated with the main screen and sub-screen in response to occurrence of touch events to the control icons.