An accurate extended pointing device and a method thereof is disclosed, which use a line vector formed by a user's finger and hand to move an indicator on a screen. The accurate extended pointing device mainly includes: an image capturing unit, being configured to capture a user image; and a directional processing unit, being configured to analyze the user image to generate a piece of user finger image data and a piece of user hand image data and generate a virtual pointing vector according to the user finger image data and the user hand image data. According to the virtual pointing vector, the operation indicator in the working frame is controlled to move as the line vector formed by the user's finger and hand moves, and the operation indicator is located at a location where the virtual pointing vector intersects with the working frame.