Discloses are a mobile terminal having a proximity touch and a method for controlling a display screen thereof. A difference of recognition rates caused by a minute difference of capacitances generated when a human body approaches a touch screen depending on users can be calibrated to be suitable for each user. Also, in the state of the recognition rate being calibrated, operations of objects, i.e., icons, avatars and menus, displayed on a wallpaper and displaying effects on the wallpaper can variously be controlled according to a user's proximity touch, thereby allowing users to control the display screen more conveniently and accurately.