Disclosed is an electronic device including a camera, a display, a sensor, and a processor, wherein the processor is configured to acquire one or more images including an external object through the camera, identify a position of the external object relative to the electronic device through at least one of the camera and the sensor, the position of the external object including a distance between the external object and the electronic device, determine whether the distance between the external object and the electronic device is within a threshold distance range, display the avatar corresponding to the external object based on the identified position of the external object through the display, if the distance between the external object and the electronic device is within the threshold distance range, wherein a size of the avatar is determined based on the distance between the external object and the electronic device, and display a specified avatar image through the display, if the distance between the external object and the electronic device is less than or equal to a lower limit of the threshold distance range.