A portable terminal having a touch screen and a method for processing an image therein are provided. The portable terminal includes a camera unit for photographing an image, a touch screen for displaying the photographed image, a controller for generating, if a substantially continuous drawing motion is detected on the touch screen, a partial area in the displayed image according to the drawing motion, and a memory unit for storing the partial area of the displayed image. Accordingly, the portable terminal may more easily perform image photographing and editing, thereby increasing user convenience.