A system and method for enhancing the sound signal produced by an audio system in a listening environment by compensating for ambient sound in the listening environment, comprises producing an audio sound in the time domain from an electrical sound signal in the time domain. The electrical sound signal in the time domain is transformed into an electrical sound signal in the frequency domain and the electrical sound signal in the frequency domain is retransformed into an audio sound in the time domain. The total sound level in the environment is measured and a signal representative thereof is generated. The audio sound signal and the total sound signal are processed to extract a signal representing the ambient sound level within the environment, and equalization is performed in the frequency domain to adjust the output from the audio sound signal to compensate for the ambient noise level.
