3D gestural interaction provides a powerful and natural way to interact with computers using the hands and body for a variety of different applications including video games, training and simulation, and medicine. However, accurately recognizing 3D gestures so that they can be reliably used in these applications poses many different research challenges. In this paper, we examine the state of the field of 3D gestural interfaces by presenting the latest strategies on how to collect the raw 3D gesture data from the user and how to accurately analyze this raw data to correctly recognize 3D gestures users perform. In addition, we examine the latest in 3D gesture recognition performance in terms of accuracy and gesture set size and discuss how different applications are making use of 3D gestural interaction. Finally, we present ideas for future research in this thriving and active research area.