Provided herein are an interactive system and a method thereof for controlling multiple remote devices. The method is executed by a portable navigation device to establish an interactive system including the portable navigation device, a host device and at least one controlled device. The portable navigation device, the host device and the least one controlled device communicate with one another according to at least one protocol. The host device receives an interactive interface provided by the least one controlled device. A cursor with respect to the host device is controlled by the portable navigation device. The least one controlled device corresponding to the interactive interface is controlled according to a motion of the cursor on the interactive interface to execute a function corresponding to the motion. Accordingly, the present invention achieves controlling the least one controlled device or transmitting data using the portable navigation device and the host device.