A system and method for mitigating microphone hiss may obtain a frequency spectrum characteristic for a microphone. A microphone that has limited dynamic range may create microphone hiss in an output signal. The microphone hiss may prevent a reproduction of a sound field, represented in an output signal of the microphone, from being perceived as a natural environment. The microphone frequency spectrum may be obtained using static measurements or calculated dynamically. A virtual noise floor may be calculated responsive to the microphone frequency spectrum and a desired noise floor. Gain coefficients may be calculated responsive to the output signal of the microphone. The gain coefficients may be calculated to mitigate undesirable signal content including background noise and echoes. The calculated gain coefficients may be modified responsive to the virtual noise floor. The modified gain coefficients may allow a reproduction of the sound field to be perceived as a natural environment.