An apparatus and method for locating a terminal in a broadband wireless communication system are provided. The apparatus for locating the terminal includes a candidate region determiner, a virtual location determiner, and a final location determiner. The candidate region determiner determines a candidate region of the terminal by using tag signal arrival time information of the terminal provided from a plurality of readers. The virtual location determiner determines a virtual location of the terminal in the candidate region in consideration of a propagation delay of the tag signal. The final location determiner predicts a tag signal arrival time from the virtual location and determines the virtual location as the final location if a difference between the predicted tag signal arrival time and a measured tag signal arrival time is less than or equal to a threshold value. The apparatus and method provide a less expensive and less complex locating system.