A mobile communication terminal and method of indicating speakerphone mode thereof are disclosed, by which a far-end user can be informed whether a speakerphone mode of the mobile communication terminal is entered. The present invention includes a radio frequency part communicating with a base station, a microphone/speaker inputting a voice of a first user and outputting a voice of a second user, an input unit inputting a command for activating/deactivating a speakerphone mode and a command for making a call to the far-end user or answering a call from the far-end user, and a controller transmitting a speakerphone mode information to the base station using the radio frequency part via a reverse channel if the microphone/speaker is used according to the command for activating the speakerphone mode. Accordingly, the first user is able to inform the second user that the first user is using a speakerphone regardless of a status of the call connection, that the user is making a call or that it is before answering an incoming call.