An interactive pointing device having pointing function in space and game control is provided in the present disclosure. The interactive pointing device comprises an accelerometer module, a dual-axis gyroscope device, and a micro processing unit. The accelerometer module functions as sensing the movement of the operator and generates at least one axis of accelerating signal corresponding to the sensed movement. The dual-axis gyroscope device functions as sensing rotation status of the interactive pointing device about dual axis and generate a corresponding rotating signal. The micro processing unit processes the at least one axis of accelerating signal and the rotating signal so as to interact with an electronic device accordingly. The micro processing unit is able to use the rotating signal to compensate the accelerating signal and assist an action evaluation process of the interactive pointing device operating under different operation modes.