Provided are an electronic device and an operation method thereof. The operation method of an electronic device for processing an audio signal may include obtaining viewing environment information related to sound intelligibility, processing an input audio signal by separating the input audio signal into a first channel including a primary signal and a second channel including an ambient signal based on the viewing environment information, processing the input audio signal based on a frequency band and based on the viewing environment information, and generating an output signal based on processing the input audio signal.