We analytically study the Wigner function (WF) for the two-variable Hermite polynomial state (TVHPS) and the effect of decoherence on the TVHPS in thermal environment. The nonclassicality of the TVHPS is investigated in terms of the partial negativity of the WF which depends on the polynomial orders m,n and the squeezing parameter r. We also investigate how the WF for the TVHPS evolves in the thermal environment. At long times, the TVHPS decays to thermal, a mixed Gaussian state, within the thermal environment.