A method and apparatus for managing location information of a mobile terminal are provided. The method includes determining location information of a current position while in a Global Positioning System (GPS) reception mode, determining at least one of preference routes and interest sites within an interest area in a vicinity of the current position, and presenting at least one of the preference routes and the interest sites on a map. The present invention improves a user's convenience and a utilization efficiency of the location information of the mobile terminal.