In one embodiment according to the invention, a cordless telephone comprises a base unit and a handset. An RF link between the base unit and the handset is adapted for use during a telephone conversation and for use as an intercom. When in an intercom mode, an incoming call is handled in a manner that does not automatically terminate the intercom mode in response to the incoming call. For example, call related information associated with the incoming call may be analyzed, and a decision to terminate the intercom mode may be based on the call related information. In an alternative example, call related information may be transmitted by the base unit to the handset, and the handset may be adapted to display at least a portion of the call related information, so that a user may elect whether to respond to the incoming call or to maintain the intercom. In another alternative embodiment according to the invention, a method of handling an incoming call in a cordless telephone that is in an intercom mode, includes the steps of analyzing call related information associated with the incoming call, and deciding whether to terminate the intercom mode based on the call related information.