The disclosure discloses a method and terminal for processing short message, comprising: receiving a short message, and creating an index identifier corresponding to the short message; storing the index identifier to a preset index file; storing the short message to a preset message file according to the index identifier. The method performs processes to short message in storage space of mobile terminal according to actual data length of short message, and stores as many short messages as possible in limited storage space, thereby efficiently utilizing storage space of SIM card used in mobile terminal, improving utilization ratio of storage space, saving resources, and providing convenience for manufactures and users of mobile terminal. Furthermore, the method can be compatible with existing SIM cards and mobile terminals, and enables existing SIM cards and mobile terminals to perform processes to short message using 6F3C file structure as usual.