A method for producing a media file with a blur effect in an electronic device is provided. The method includes segmenting an image frame into a plurality of segments. Further, the method includes determining at least one segment from the plurality of segments comprising one of a foreground Region of Interest (ROI) and a background region of the ROI and detecting whether one of the foreground region of the ROI and the background region of the ROI comprises motion information and static information. Further, the method includes automatically applying a motion type blur effect and/or a static type blur effect on one of the foreground region of the ROI, and the background region of the ROI. The method includes generating the media file based on the applied the motion type blur effect and the static type blur effect and storing the media file.