An electronic device for controlling a display based on luminance of external light and a method therefor are provided. The electronic device includes a display, a sensor, a memory, and a processor operably connected to the display, the sensor, and the memory. The processor is configured to identify first information regarding external light directed to the electronic device, acquire first frame data based on the identified first information and second information regarding the user, display the first frame data on the display, identify second frame data distinguished from the first frame data from an application stored in the memory while the first frame data is outputted on the display, adjust color of at least one of multiple pixels included in the second frame data at least partially based on the first frame data, and control the display based on the first frame data or the adjusted second frame data.