A channel estimation method and apparatus using a self-tracking algorithm is provided for improving channel estimation accuracy. The channel estimation apparatus of a mobile terminal includes a receiver for converting a received radio signal into a baseband signal, a match filter for converting the baseband signal into a digital signal including at least two samples, a channel estimator for buffering the samples, for analyzing multipath signals to predict a maximum power position and multipath energy, and for estimating a channel by selecting a multi-tap at the maximum power position through a slew control, an equalization controller for calculating an equalization tap gain using the multi-tap selected by the channel estimator, and an equalizer for compensating for distortion in the samples output by the channel estimator using the equalization tap gain calculated by the equalization controller.