The embodiments herein disclose a method and system for interference cancellation in a Heterogeneous Network (HetNet) including a base station serving a User Equipment (UE), and a plurality of neighbor base stations. Further, the method includes sharing a parameter associated with the base station serving the UE and the plurality of neighbor base stations in the HetNet. Further, the method includes determining whether the UE is experiencing interference from the neighbor base station based on the parameters. Further, the method includes coordinating with the base station serving the UE to cancel the level of interference experienced by the UE based on the transmission mode associated with each base station serving the UE and the neighbor base station interfering at the UE. The transmission mode is one of a Single-Input and Multiple-Output (SIMO) and Multiple-Output and Multiple-Output (MIMO) mode.