Various aspects of a system and method to process traffic sound data to provide in-vehicle driver assistance are disclosed herein. The system includes one or more circuits in an electronic control unit (ECU) of a first vehicle. The one or more circuits in the ECU are configured to receive sound data captured by two or more audio-input devices associated with the first vehicle. The sound data corresponds to sound emanated from one or more other vehicles. Thereafter, a relative position (distance and/or angle) of the first vehicle from a second vehicle of the one or more other vehicles is determined based on the received sound data. Further, an in-vehicle alert is generated for the first vehicle based on the determined relative position. The in-vehicle alert comprises a virtual sound representative of sound emanated from the second vehicle.