An apparatus and method for canceling an interference signal in a broadband wireless communication system are provided. A receiver of a wireless communication system includes at least two receive antennas for receiving a target signal of a serving base station and interference signals of at least one neighbor base station; a channel estimator for estimating channels of the signals received through the receive antennas; and a detector for detecting the target signal using channel estimation values of the received signals. Accordingly, it is possible to reduce error propagation caused by the incorrect estimation and detection of the interference signal. In addition, time delay for detecting/restoring/removing the interference signal does not occur. Moreover, the increase of additional buffers can be prevented. Consequently, the increase of hardware complexity can be prevented.