An embedded display panel and a terminal with touch function and a touch detection method are disclosed. The display panel includes an up substrate, a down substrate, and a liquid crystal layer between the up substrate and the down substrate. In addition, a touch electrode layer is formed between the liquid crystal layer and the up substrate, and the touch electrode layer includes a plurality of electrodes arranged in a matrix. A driving selector is arranged between the up substrate and the down substrate, and each of the electrodes is connected to the corresponding driving selector via lead wires. A touch controller is arranged outside a space defined by the up substrate and the down substrate. The touch controller is connected to the driving selector via a signals selection line and a scanning signal line, and a number of the signal selection line and the scanning signal line is less than the number of the lead wires. The touch controller is configured for transmitting selection signals to the driving selector via the signal selection line, and driving selector is configured for selecting at least one of the lead wires to be connected with the scanning signal line in response to the selection signals. In this way, the number of the lead wires needed to connect with the touch controller may be greatly reduced.