A competence diagnosis system for a urea water temperature sensor that can prevent a misdiagnosis when urea water is replenished in a urea tank. The system includes a urea water level condition determination unit that stores a urea water level, which is measured by a level sensor provided in the urea tank, in a storage unit immediately before key-off, obtains a level difference between the urea water level stored in the storage unit and a current urea water level after key-on, and allows a diagnosis by the competence diagnosis unit through temperature comparison when the level difference is less than or equal to a predetermined threshold value.