A battery management system and a driving method thereof includes a sensing unit and a micro control unit (MCU). The sensing unit measures a battery temperature and a battery current. The MCU receives the battery temperature and current, detects battery internal resistance corresponding to an estimated state of charge (SOC) and the battery temperature when the estimated SOC is included within an SOC area corresponding to the transmitted battery temperature, and estimates a battery state of health (SOH) by using the battery internal resistance. In the SOC area, a variation of the battery internal resistance is minimized.