Disclosed herein are an electric bicycle and a control method thereof. The electric bicycle includes a hub motor including a motor housing configured to rotate with a wheel, a sprocket connected to a chain so as to rotate by receiving rider pedaling force through the chain, a first speed detector to detect a speed of the hub motor, a second speed detector to detect a speed of the sprocket, a motor driving unit to drive the hub motor, and an electronic control unit to compare the speed of the hub motor with the speed of the sprocket and control the motor driving unit to perform speed control of the hub motor according to a comparison result, wherein the second speed detector includes a magnet provided at the motor housing and disposed adjacent to teeth formed at an outer peripheral surface of the sprocket, a magnetic substance disposed apart from the magnet at a distance corresponding to a gap between the teeth of the sprocket or more gaps, a magnetic substance assembly connected with the magnetic substance and configured to rotate with the motor housing when the motor housing rotates, a PCB substrate fixed to a shaft of the hub motor, and a hall sensor provided at the PCB substrate in order to detect a change of a magnetic field of the magnetic substance assembly.