A location sensing system and method for a mobile communication system is provided for maintaining location sensing service with the support of mobile nodes when there is an insufficient number of anchor nodes for reference points. A location sensing method for a mobile communication system includes discovering, at a source mobile node, anchor nodes in a vicinity; discovering, when a number of discovered anchor nodes is less than a predetermined number of reference nodes required for location sensing, neighboring mobile nodes; selecting at least one of neighboring mobile nodes as a reference mobile node; and computing a location of the source mobile node in cooperation with the predetermined number of reference nodes including the discovered anchor nodes and the reference mobile node.