A method and an apparatus for estimating a location to support a location based service of a terminal in a mobile communication system are provided. The method includes receiving first reference signals from three base stations, calculating TDOAs, and solving a first equation using the TDOAs based on the first reference signals; when a solution of determining a location of a terminal based on the first equation is real or imaginary values, receiving second reference signals from the three base stations, calculating TDOAs, and solving a second equation using the TDOAs based on the second reference signals; and when a solution of determining the location of the terminal based on the second equation is real or imaginary values, determining the location of the terminal based on a relation between the first equation and the second equation.