A method and an electronic device for detecting a gesture performed by a user using a wearable device are provided. The method includes determining a first orientation of the wearable device using at least one inertial sensor; determining an orientation of the wearable device worn on a finger of the user by at least one touch sensor; determining a final orientation of the wearable device using the determined first orientation and the determined orientation of the wearable device; and interpreting at least one user gesture based on the determined first orientation of the wearable device.