Abstract: An interactive system includes a display device and an interactive device. The display device includes a display module for displaying an image thereon, a S processor module and a transceiver. The interactive device includes an image capturing unit, a control unit, and a signal transceiving unit configured to communicate with the transceiver. The image capturing unit is operable to capture at least a part of the image displayed on the display module. The control unit is operable to transmit information of the captured part of the image to the transceiver via the signal transceiving unit. The processor module is operable to determine location of the interactive device relative to the image displayed on the display module based on the information of the part of the image received by the transceiver.