An apparatus and method for location estimation in a wireless communication system are provided. The method includes identifying if a received at least one signal passed through at least one repeater, when the received at least one signal is identified as having passed through at least one repeater, measuring a Base Station (BS) basis delay time and calculating a repeater basis delay time using the measured BS basis delay time, and estimating a location of the Mobile Station (MS) using the repeater basis delay time.