An electronic device and a controlling method are provided. The controlling method of the electronic device includes transmitting a signal to a plurality of external devices communicatively connected to the electronic device, receiving, from each of the plurality of external devices, intensity information of the signal sensed by an external device and identification information of an external device, determining at least one external device that is positioned in a same space as the electronic device, from among the plurality of external devices, based on the response signal, designating the at least one external device and the electronic device as a device group, and controlling the device group based on the user command, when a user command is input to at least one device from among the device groups.