The present disclosure relates to an audio device and an operation method thereof. The audio device may include a speaker; a plurality of microphones spaced a predetermined distance apart from each other; and controller. The controller controls the plurality of microphones to receive audio output from an external audio device, determines a location of the external audio device on the basis of signals received from the plurality of microphones and adjusts a setting for an audio output from at least one of the external audio device and the speaker, based on the location of the external audio device.