An electronic device includes an object sensor for detecting motion of an object, such as a stylus or finger, relative to device and during a period of contactless object movement. A motion sensor, such as an accelerometer, detects device motion during the period of contactless object movement. A processor determines a gesture that corresponds to the movement of the object and to movement of the device. This device, and the associated method, results in a more accurate determination of an intended gesture, such as a three-dimensional gesture. For example, the processor, or gesture determinator, can compensate for movement of the device when determining the gesture corresponding to detected contactless movement of the object.