Disclosed is an electronic device including a processor configured to set a wake-up luminance of a display, based on a wake-up illuminance, to set, upon detecting an illuminance change through the illuminance sensor, a first target luminance of the display by using a first threshold illuminance value at a time point of detecting the illuminance change, to identify whether a flag setting related to an update of a threshold illuminance value is changed, while changing a luminance of the display based on the first target luminance, to determine the first target luminance as a final luminance of the display when there is no change in the flag setting, to update the first threshold illuminance value to a second threshold illuminance value when there is a change in the flag setting, and to change a target luminance of the display from the first target luminance to a second target luminance by using the second threshold illuminance value.