When surrounded by extraneous noise around, it is likely that one can’t listen properly. A child need to be guided and encouraged to listen actively.
 
Here are a few activities to sharpen listening.

1
The child sitting inside the house has to recognize the outside sound – if it is traffic sound, which vehicle is it? If it is human voice then, who is it – man or woman, young or old? If he hears an animal sound, which animal is it?
2
Make different sounds - laugh, cry, gargle, clap or click. The child has to repeat the sounds.
3
Make some strange sounds like – spooky, thunder, vehicle sound, animal sounds. Tell the child to repeat exactly the way he heard.
4
Treasure hunt – hide one of the child’s toys. Give him clues. Start with a simple task.  As he enjoys the task, slowly make it complicated. He has to listen carefully to find the treasure.
5
Describe one of the child’s toys and ask him to identify the toy. Start with simple description. Then slowly make it complex. Children love their things. They are possessive. So use the child’s things for activities.
6
Once the child starts identifying his things, describe people, things around the house, animal or vehicle.