Abstract: The present invention relates to a handheld terminal capable of supporting menu selection using dragging on a touch screen and a method of controlling the handheld terminal. When one of first level menu items displayed on a touch screen is touched, one or more second level menus belonging to the touched first level menu item are displayed. When a drag to one of the second level menu items is performed, a plurality of third level menu items belonging to a menu item corresponding to a location at which the drag was performed is displayed. When a release, ending the touch, is performed, a menu item corresponding to a location at which the release was performed is selected. Therefore, a user can select his or her menu item using a single touch and drag operation.