A method and an electronic device for communication quality improvement based on ambient noise sensing are provided for improving communication quality. The method includes: during a call, dynamically setting a noise reduction mode in response to the varying of an ambient noise amount of at least one audio signal received by the electronic device. The setting step includes: during the call, dynamically determining whether the ambient noise amount indicates the needs of the application of noise reduction. If the ambient noise amount indicates the needs of the application of noise reduction, then one of a plurality of noise reduction levels is selected according to the ambient noise amount, and the noise reduction mode is set according to the selected noise reduction level, wherein the noise reduction levels include at least two levels corresponding to two different amounts of noise reduction.