Provided is an apparatus and method of managing a telematics application based on a vehicle's status. The apparatus includes an application install manager which sets execution condition information including information related to a vehicle's status at which the application is activated, a vehicle's status detector which detects the vehicle status, and an application execution manager which recognizes the application that is activated when detecting a vehicle's status, and executes the application. Accordingly, executing a telematics terminal application supports safe driving. In addition, when in an emergency situation, a resource can be rapidly ensured, and an application for handling the emergency situation is performed, thereby effectively overcoming the emergency situation.