The invention discloses a handheld type pointing device and an inclination angle correction method of the handheld type pointing device. The method includes the following steps that firstly, when the handheld pointing device points to a reference point, the image corresponding to the reference point is captured, and multiple image frames are sequentially generated; secondly, whether the reference point moves by a long distance or not is judged according to the multiple image frames; thirdly, if the reference point is judged not to move by a long distance, multiple acceleration values, in multiple axle directions, of the handheld type pointing device are sensed through an acceleration unit of the handheld type pointing device, and therefore the first inclination angle which is used by the handheld type pointing device at present is renewed to be the second inclination angle according to the multiple acceleration values. In this way, the position of the reference point can be effectively and accurately calculated according to the inclination angles of the handheld type pointing device through the handheld type pointing device by executing the inclination angle correction method.