A mobile terminal and method of generating a content therein are disclosed, by which a video file can be created using an image captured by a camera and playback music. The present invention includes a camera for capturing a picture, an audio output module outputting a played music, a display unit displaying the captured picture, a controller controlling the camera to capture a plurality of pictures in the course of playing the music, the controller creating a video file by inserting a plurality of the captured pictures in a specific playtime of the music matching a capture timing point of the picture, and a memory storing the created video file.