Nonnegative matrix factorization- (NMF-) based noise reduction methods can effectively improve the performance of environmental sound recognition. However, when the environmental sound overlaps highly with the noise, the spectral line loss and noise residue will occur in the low signal-to-noise ratio (SNR) condition. An adaptive noise reduction algorithm was proposed in this paper. First, noisy environmental sound is separated into estimated noise and environmental sound using NMF. Then, the estimated noise is used to calculate sound presence probability (SPP), which is adapted to decrease spectral line loss and achieve accurately estimated noise. Subsequently, the estimated noise combines with noisy environmental sound to obtain the estimated environmental sound. Finally, SPP is applied to reduce residual noise in the estimated environmental sound and reconstruct the environmental sound. The simulation results demonstrate that the proposed algorithm outperforms the traditional algorithms and NMF-based methods in terms of perceptual evaluation of speech quality (PESQ) and global SNR with increase of X% and X%, respectively. Moreover, the proposed method can effectively improve the environmental sound recognition rate. Particularly, the proposed method makes a 16.2% increase of F1-score in car horn recognition under the realistic acoustic condition.