A digital spectrum analysis apparatus and method for direction finding (DF) and location is provided. The digital spectrum analysis apparatus includes: a multi-channel unit configured to convert signals inputted from antennas into digital signals, reduce a sampling rate of the digital signals by using a digital down converter (DDC), and convert the digital signals into baseband complex signals, and having a plurality of channels; a DF estimator configured to estimate the direction of the signal; a spectrum processing unit configured to map any one of a bearing and a power level of the baseband complex signal into coordinate system, and allocate different colors to one of the bearings and the power levels depending on the accumulation ratio of one of the bearing and the power level; and a display unit configured to display the power level and the bearing with colors.