A gesture recognition method with improved background suppression includes the following steps. First, a plurality of images are sequentially captured. Next, a position of at least one object in each of the images is calculated to respectively obtain a moving vector of the object at different times. Then, an average brightness of the object in each of the images is calculated. Finally, magnitudes of the moving vectors of the object at different times are respectively adjusted according to the average brightness of the object in each of the images. There is further provided a gesture recognition apparatus using the method mentioned above.