An apparatus and method for canceling pilot signals from neighbor base stations is disclosed. The present invention cancels unnecessary pilot signals transmitted from the neighbor base stations by detecting, analyzing a PN signal in a pilot signal of each base station, generating estimated interference signal according to analyzed information from the detected PN signal and subtracting estimated interference signal from the received signal. Therefore, the present invention increases a bandwidth of downlink transmission channel and improves the demodulator to be operatable in low signal-to-noise ratio (Eb/No).