A user can automatically change a user interface of a portable terminal into a user interface of an electronic appliance suitable for user's intention. A portable terminal recognizes a circumferentially existing electronic appliance based on a photographic image or a radio signal, and allows one or more applications having a user interface varying by electronic appliance to start and then be resident in a memory of the portable terminal. Then, when the portable terminal recognizes a predetermined electronic appliance, the portable terminal changes a user interface displayed on a display unit and an input unit of the portable terminal into a user interface of an application associated with the predetermined electronic appliance to enable a user to view the user interface. When a user puts the portable terminal to a predetermined direction, the portable terminal recognizes an electronic appliance existing in the direction and displays the corresponding user interface.