Disclosed are a wireless communication apparatus for reducing interference by a neighboring cell, and a method of reducing interference thereof. The method of reducing interference by a wireless communication apparatus includes: determining a neighboring small cell from one or more surrounding small cells adjacent to a small cell; allocating a communication resource to one or more users according to a channel state of the one or more users subscribing to the small cell; and transmitting data to the one or more users, to which the communication resource is allocated, by adopting one or more interference reducing methods for reducing interference by the neighboring small cell.