This specification relates to a mobile terminal capable of being compatible with market applications with various LCD resolutions, and an LCD resolution compatibility method thereof. When resolution of a market application is different from LCD resolution, the application image is displayed on a window based on virtual WVGA resolution and then enlarged or reduced based on an actual LCD resolution to be finally displayed on a display unit. This provides an effect of displaying the application image with the same figure as displayed on the WVGA LCD and text and lines more clearly irrespective of an actual LCD size. In addition, a set value for a resolution compatibility mode of an application downloaded from a market may be provided to a user at a specific time point (upon downloading or purchasing), based on usage patterns of a plurality of users and versions of applications.