An electronic device for controlling a pointer in virtual reality (VR) is provided. The electronic device includes a display, a communication circuit, a processor electrically connected with the display and the communication circuit, and a memory electrically connected with the processor, wherein the memory may store instructions executed to enable the processor to receive a control signal from an external controller through the communication circuit, identify a direction based on at least the received control signal, determine a first position in a designated first distance range, which is away from a first reference position related to the external controller along the identified direction, in a virtual space displayed through the display, and control the display to display a pointer on a screen of the virtual space based on the first position.