A wearable device that is configured to be worn on a body of a user and a control method thereof are provided. The wearable device includes an image projector configured to project a virtual user interface (UI) screen, a camera configured to capture an image, and a processor configured to detect a target area from the image captured by the camera, control the image projector to project the virtual UI screen, which corresponds to at least one of a shape and a size of the target area, onto the target area, and perform a function corresponding to a user interaction that is input through the virtual UI screen.