A system and method for adaptive thermal and performance management in electronic devices are disclosed. A particular embodiment includes: providing a processor with a plurality of selectable performance levels and a sensor in an electronic device; receiving sensor information from the sensor, the sensor information including information for determining if the electronic device is positioned proximately to an active airflow; determining a device context from the sensor information; and dynamically modifying the performance level of the processor by implementing one of a plurality of selectable performance levels of the processor based on the device context.