To interact with physically disabled people, hand gesture recognition system using MATLAB has been introduced. The most contributing reason for emerging gesture recognition using software is that, they can create a simple path between human and computer interaction. Usually, the focus of this system is to recognize hand configurations including position, orientation, and movements.The main goal of this project is to write a code in MATLAB in order to detect the hand gesture through webcam of laptop and to give relevant outputs based on the database which is already dumped into the code. The overview of the hand gesture recognition is to detect the hand using background subtraction method and the result of hand detection is transformed to a binary image using image segmentation. Then, segmented image is sent to feature extraction stage. In feature extraction stage the Cross-correlation coefficient is applied on the gesture to recognize it from the database.