Ilia filo laboras en alia urbo, sed ilia filino ankoraŭ loĝas hejme.

Because in Esperanto, possessive words like mia, via, lia, ŝia, nia, ilia usually go directly before the noun they belong to.

So:

• ilia filo = their son
• ilia filino = their daughter

Even though English might sometimes avoid repeating their, Esperanto normally repeats it when it belongs to both nouns. That makes the structure very clear.

Filo means son and filino means daughter.

This is a very common Esperanto pattern:

• filo = child/son in the male sense
• filino = daughter

The part -in- is a suffix that marks the feminine form. You will see it in many words:

• patro = father, parent in older/traditional usage
• patrino = mother
• frato = brother
• fratino = sister

So filino is built from fil- + -in- + -o.

Because -as is the present-tense verb ending in Esperanto.

So:

• laboras = works / is working
• loĝas = lives / is living

Esperanto verbs do not change according to the subject:

• mi laboras = I work
• vi laboras = you work
• li laboras = he works
• ili laboras = they work

The subject changes, but the present-tense ending -as stays the same.

They mean different kinds of activity:

• labori = to work
• loĝi = to live, reside, dwell

So in the sentence:

• Ilia filo laboras en alia urbo = their son works in another city
• ilia filino ankoraŭ loĝas hejme = their daughter still lives at home

A learner might confuse them because both are common everyday verbs, but labori is about employment or work, while loĝi is about where someone lives.

Because this sentence describes location, not movement.

• en alia urbo = in another city → location
• en alian urbon = into another city → movement toward a destination

Esperanto often uses the accusative -n to show direction or movement. But here the son is working in another city, not going into it.

So no -n is needed.

Because alia is an adjective, and adjectives in Esperanto end in -a.

Here it describes urbo:

• alia urbo = another city

Adjectives also agree with the noun in number and case. Since urbo is singular and not accusative, the adjective stays alia.

Compare:

• alia urbo = another city
• aliaj urboj = other cities
• alian urbon = another city as a direct object
• aliajn urbojn = other cities as direct objects

Ankoraŭ means still or sometimes yet, depending on context.

In this sentence:

• ilia filino ankoraŭ loĝas hejme = their daughter still lives at home

It comes before the verb here, which is very natural. Esperanto word order is fairly flexible, but this placement is common and clear.

You may also see similar adverb placement in sentences like:

• Li ankoraŭ dormas = He is still sleeping
• Ŝi ankoraŭ ne venis = She still has not come / She hasn’t come yet

Because hejme is an adverb meaning at home.

• hejmo = home (a noun)
• hejme = at home (an adverbial form)

The ending -e marks adverbs in Esperanto.

So:

• Mi estas hejme = I am at home
• La hejmo estas granda = The home is big

In your sentence, the daughter is living at home, so the adverb hejme is the correct form.

Because Esperanto has no indefinite article.

English distinguishes:

• a city
• the city

Esperanto only has a definite article, la, for the. There is no separate word for a/an.

So:

• urbo can mean a city or just city, depending on context
• la urbo = the city

That is why alia urbo naturally means another city without needing a word for a.

Because hejme is not a noun here; it is an adverb.

You only use la with nouns:

• la hejmo = the home

But:

• hejme = at home

Since hejme is an adverbial expression of place, la is not used.

Sed means but.

It connects the two parts of the sentence and shows a contrast:

• the son works in another city
• but the daughter still lives at home

So sed is appropriate because the sentence compares two different situations in the same family.

A few pronunciation points are important here:

• ĝ in loĝas is pronounced like the j in judge
• ŭ in ankoraŭ is a very short w-like sound

So roughly:

• loĝas sounds like LOH-jas with the j of judge
• ankoraŭ sounds roughly like an-ko-RAU, where aŭ sounds a bit like ow in now

Also remember that Esperanto stress normally falls on the second-to-last syllable:

• lo-ĜAS
• an-ko-RAŬ
• fi-LI-no
• la-BO-ras

Not naturally in this case. Esperanto normally states the subject clearly when it changes.

Here the first subject is their son, and the second is their daughter, so both are expressed:

• Ilia filo laboras en alia urbo, sed ilia filino ankoraŭ loĝas hejme.

If you removed ilia filino, the meaning would become unclear, because the second clause would no longer clearly tell us who still lives at home. Repeating the subject is the normal and best choice here.