A system and method of managing a radio bearer in a mobile communication system is provided which releases an assigned radio bearer while maintaining Packet Data Protocol (PDP) Context information related to a subscriber's Packet Session. This improves efficiency of use of the radio bearer. Also, in a case in which a user desires a temporary service interruption, the PDP context is preserved. Thus, it is possible to prevent accrual of fees associated with undesired service, thereby decreasing overall fees to subscribers.