A touch panel-equipped mobile terminal is configured to be used as a mouse according to a mouse function provision method. The mouse function provision method includes displaying a mouse operation image on a screen of the display unit in response to a mouse host application execution request; detecting a touch gesture made with a touch input tool on the mouse operation image; determining, when movement of the touch input tool is detected, whether a touch hold time counted from the detection of the touch gesture is greater than a first hold threshold; and transmitting, when the touch hold time is greater than the first hold threshold, an object move command to an output terminal and, when the touch hold time is not greater than the first hold threshold, a pointer move command.