A system and method for tracing a location of a mobile terminal involves having the mobile terminal transmit a predetermined signal including discrimination information with a predetermined interval. A plurality of base stations calculate distances from the mobile terminal based on a reception time for the predetermined signal transmitted from the terminal and then transmit the distance values to a cell controller. The cell controller traces a location of the mobile terminal using the distance values transmitted from the base stations. Accordingly, the system and method does not need a GPS receiver to calculate the terminal location, thereby reducing costs and location error range for the mobile telecommunication system.