A method and an apparatus for recognizing an accessory of a portable terminal are provided. The apparatus includes an interface unit in which the accessory is mounted, a power supply for supplying microphone bias power for recognizing the accessory in the interface unit, a current detector for determining an output current of the power supply, and a controller for determining whether the output current of the power supply exceeds a preset reference current when mounting of the accessory is sensed, and for recognizing a type of the accessory according to the output current of the power supply when the output current of the power supply exceeds the preset reference current. The apparatus may automatically recognize a type of an accessory connected with an interface unit to improve the convenience for a user.