A cellular telephone includes an internally integrated digital entertainment module. The telephone includes a transceiver unit and a headset which is connected to the transceiver unit by wired or wireless link. The entertainment module includes an interchangeable ROM and/or expansion RAM for storing music or other audio signals for playback through the telephone's headset. Music or other audio signals in digitized form is stored in the interchangeable ROM or is loaded into the expansion RAM from a CD player, computer, or other source of digitized audio signals. Under control of the cellular telephone's microprocessor, the digitally stored audio signal is played back through the telephone's headset. The entertainment module may be located in the transceiver unit, a removable battery pack, or in a separate adapter.