Provided is a method for operating a terminal in a wireless communication system, the method comprising: receiving, from a serving base station, a location request message including at least one of positioning reference signal (PRS) information of a neighbor base station and cell ID information of the neighbor base station; receiving a PRS of the serving base station from the serving base station; receiving a PRS from the neighbor base station based on the received location request message; estimating a location of the terminal based on the PRS received from the serving base station and the PRS received from the neighbor base station; and transmitting the estimated location of the terminal to the serving base station.