An electronic device is provided. The electronic device includes a display, a camera module configured to be positioned below the display, a memory configured to store instructions, and a processor configured to be functionally connected to the display, the camera module, and the memory, wherein the processor is configured, by executing the instructions, to cause the electronic device to identify a change in an operating state of the camera module while displaying a predetermined image in an area of the display surrounding the camera module, change a size of the area surrounding the camera module in response to identifying the change in the operating state of the camera module, and display the predetermined image in the changed area.