An electronic device is provided. The electronic device includes a communication module, a sensor module, a sound input module, a sound output module, a memory including a buffer, and a processor. The processor is configured to determine whether an external electronic device has at least one speaker and/or microphone, select, a speech reception device from among the electronic device and the external electronic device based on sensing information received when a call is connected, select a speech transmission device, from among the electronic device and the external electronic device based on a comparison of a speech signal received from the electronic device with a speech signal received from the external electronic device when a call is connected, and if the speech transmission device and the speech reception device are different devices, enable at least one microphone included in the speech transmission device, disable at least one speaker included in the speech transmission device, disable at least one microphone included in the speech reception device, and enable at least one speaker included in the speech reception device, acquire an echo reference signal related to reception speech received from the speech reception device and store the echo reference signal in the buffer, determine, based on comparison of the stored echo reference signal to transmission speech received from the speech transmission device, an EPD value relating to an echo signal included in the transmission speech, and cancel the echo signal by using the echo reference signal and the determined EPD value.