A Bluetooth-enabled mobile terminal and fast device connection method is provided for reducing device connection latency and power consumption. The device connection method includes inquiring of devices by broadcasting an inquiry at an inquiry Power Control Level (PCL), requesting the devices responded to the inquiry for remote names by transmitting a remote name request, determining whether a device is selected among the devices responded to the remote name request, determining, when a device is selected, whether the selected device is a pre-paired device, attempting, when the selected device is a pre-paired device, pairing with the selected device at a preset PCL, and attempting, when the selected device is not a pre-paired device, pairing with the selected device at the inquiry PCL set for broadcasting the inquiry.