This study aimed to understand how visually degraded conditions affect the intelligibility of isolated signs in sign language, and how these conditions influence perceived difficulty. Twenty-nine fluent users of Swedish Sign Language viewed 100 isolated signs presented under two types of visual degradation: spectral degradation (pixelation) and background noise (salt-and-pepper noise), each across five levels of degradation. Participants identified each sign and rated the perceived difficulty. Generalized linear mixed models were used to evaluate the effect of level of degradation on intelligibility and perceived difficulty, separately and for each type of degradation. Psychometric functions were estimated, and generalized linear mixed models were used to analyse the relationship between intelligibility and perceived difficulty. Both types of degradation significantly reduced intelligibility and increased perceived difficulty. Psychometric curves showed that intelligibility plateaued around 70% accuracy, mirroring results from speech-in-noise research. Correct responses were consistently rated as easier to perceive, and an interaction between degradation level and response accuracy was observed only in the spectral degradation condition, suggesting distinct perceptual processing mechanisms. Visual degradations affect sign language intelligibility in ways comparable to auditory distortions in speech, with differences between degradation types suggesting distinct perceptual strategies. These findings have implications for theories about linguistic processing in perceptually challenging conditions and call for further investigation into cognitive and linguistic factors that influence sign perception in degraded conditions.