Abstract: The present invention discloses an interactive projection system with light spot identification, including M pointing devices and a projector, and a control method thereof. A light emitting module of each pointing device selectively generates an infrared light spot, and generates an infrared lighting spot status signal corresponded to the operating status of the light emitting module. A wireless signal transmission module of each pointing device transmits a wireless signal including an identification code and the infrared lighting spot status signal. An infrared light spot capturing module of the projector is used to capture an image indicating the infrared light spot projected on a screen. The interactive projection system correspondingly displays movement tracks in order of the infrared light spots on a monitor according to the image and the wireless signals from the M pointing devices, wherein M is a positive integer and greater than or equal to 1.