The invention relates to a system for interference cancellation and method thereof. The system includes a receiver, a transmitter, and a channel estimating and equalizing device. The transmitter and the receiver use different wireless communication technologies to transmit and receive data. The channel estimating and equalizing device can estimate the channel between the transmitter and the receiver for interference cancellation. The embodiments of the invention provide a system and a method thereof for reducing interferences generated when using one wireless communication technology to transmit signals but using another wireless communication technology to receive signals by using digital baseband signals.