The invention discloses a method and a terminal for improving the utilization ratio of a memory space. The method comprises steps of A, monitoring the available space in the memory space, judging whether the available space is smaller than a preset space or not; if yes, starting a file system compression mode, and scanning files in the memory space; if not, stopping monitoring; B1, judging whether the currently scanned file is a compressible file or not; if yes, executing step C1; if not, scanning the next file, repeating step B1 until all the files are completely scanned, and exiting from the file system compression mode; and C1, compressing and marking the compressible file, scanning the next file, and returning to step B1. All the files in the memory space are appropriately and selectively compressed through the method, the utilization ratio of the memory space is improved, and a user does not need to select the files to perform a plurality of times of compression, so that the use by users is facilitated, and a user experience effect is improved.